How Tri Pointe Homes Uses This Clause
Tri Pointe Homes purchase agreements have been documented to include mandatory binding arbitration provisions. Tri Pointe Homes' terms of use require that disputes be submitted to confidential, binding arbitration. The company's legacy subsidiary Pardee Homes used judicial reference provisions that the California Court of Appeal found unconscionable in Pardee Construction Co. v. Superior Court (Rodriguez), 100 Cal.App.4th 1081 (2002). Tri Pointe's legacy subsidiary Trendmaker Homes similarly sought to compel arbitration in Texas courts, with the Texas Ninth Court of Appeals addressing Trendmaker's motions to compel arbitration in mandamus proceedings. Current purchase agreements should be reviewed for binding arbitration and class action waiver provisions. This clause has been the subject of litigation, including Pardee Construction Co. v. Superior Court (Rodriguez).
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because Tri Pointe Homes operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
Tri Pointe Homes's scale means contract templates are largely standardized across its operations. A clause identified in one market's contract is likely present in other markets' contracts, though local addenda may modify the terms.
Builder-Specific Details
Combined with Class Action Waiver
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
Standardized Across Markets
Tri Pointe Homes's scale means contract templates are largely standardized across its operations. This clause identified in one state's contract is likely present in other states' contracts, though local addenda may modify the terms.
Standard Form Contract
This clause appears in Tri Pointe Homes's standard purchase agreement, which is generally presented on a take-it-or-leave-it basis. Buyers typically have limited ability to negotiate individual terms, though making the request in writing is still advisable.
Legal History
The following cases involve Tri Pointe Homes's use of this clause type.
Pardee Construction Co. v. Superior Court (Rodriguez)
The court ruled that Pardee's purchase agreement provisions requiring judicial reference were unconscionable contracts of adhesion, and that provisions waiving buyers' right to recover punitive damages were contrary to public policy. The court affirmed denial of Pardee's petition to compel judicial reference in construction defect claims brought by homeowners of entry-level residences in San Diego's Otay Mesa area. Review was denied by the California Supreme Court. (100 Cal.App.4th 1081)
Trendmaker Homes Mandamus (Arbitration)
Trendmaker Development Company (d/b/a Trendmaker Homes) filed an original mandamus proceeding and appeal from the 284th District Court of Montgomery County, seeking to compel arbitration of homeowner claims. Trendmaker argued plaintiffs' claims must be arbitrated because Trendmaker was the developer and a third-party beneficiary of the arbitration agreement.
In re Trendmaker Homes, Inc.
Trendmaker Homes (now Tri Pointe Homes Texas, Inc.) was involved in proceedings from the 400th District Court of Fort Bend County involving motions to compel arbitration in homeowner disputes.
Westerlies Community Association v. Tri Pointe Homes
The Westerlies Community HOA filed a construction defect lawsuit against Tri Pointe Homes Inc., Tri Pointe Communities Inc., Tri Pointe Contractors LP, and Tri Pointe Homes Holdings Inc. The case was stayed pending arbitration per a July 2021 stipulation.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Tri Pointe Homes's operating states.
| State | Status | Note |
|---|---|---|
| California | Uncertain | The enforceability of mandatory arbitration clauses in California new construction contracts is... |
| Colorado | Likely Enforceable | Mandatory arbitration clauses in Colorado new construction contracts are likely enforceable.... |
| Arizona | Likely Enforceable | Mandatory arbitration clauses in Arizona new construction contracts are likely enforceable. Arizona... |
| Nevada | Likely Enforceable | Mandatory arbitration clauses in Nevada new construction contracts are likely enforceable. Nevada... |
| Texas | Likely Enforceable | Mandatory arbitration clauses in Texas new construction contracts are likely enforceable. Texas has... |
| Washington | Likely Enforceable | Mandatory arbitration clauses in Washington new construction contracts are likely enforceable.... |
| Oregon | Likely Enforceable | Mandatory arbitration clauses in Oregon new construction contracts are likely enforceable. Oregon... |
| Virginia | Likely Enforceable | Mandatory arbitration clauses in Virginia new construction contracts are likely enforceable.... |
| Maryland | Likely Enforceable | Mandatory arbitration clauses in Maryland new construction contracts are likely enforceable.... |
| North Carolina | Likely Enforceable | Mandatory arbitration clauses in North Carolina new construction contracts are likely enforceable.... |
Related Clauses in Tri Pointe Homes Contracts
This clause often works in combination with other provisions in Tri Pointe Homes's purchase agreements.
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
Disputes over deposit forfeiture must be resolved through arbitration, where the cost of pursuing a claim may exceed the deposit amount.
Challenges to the habitability waiver must be pursued in arbitration rather than court.
Even if an arbitrator finds in the buyer's favor, the liability cap may limit the award.
What Buyers Can Do
- Understand the arbitration process before signing. Review which arbitration provider is specified, who selects the arbitrator, and whether you have any right to appeal. These details significantly affect the fairness of the process.
- Research the arbitration provider's track record. The specified arbitration provider may have a history with builder disputes. Understanding the provider's procedures and typical outcomes can help you prepare.
- Review the Pardee Construction Co. case. The Pardee Construction Co. v. Superior Court (Rodriguez) ruling may be relevant to your situation. If you are buying a Tri Pointe Homes home in a state with similar legal protections, this precedent could affect the enforceability of this clause.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Tri Pointe Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.