How Woodside Homes Uses This Clause
Woodside Homes purchase agreements have included provisions requiring buyers to pursue all claims on an individual basis, waiving the right to participate in class action lawsuits or class arbitration proceedings. This prevents groups of buyers experiencing identical or similar defects from combining their claims. (Source: common production builder contract pattern)
This provision typically appears within the dispute resolution section of the purchase agreement, often alongside the mandatory arbitration clause.
Woodside 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 Mandatory Arbitration
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings, increasing the cost and burden for each buyer.
Standard Form Contract
This clause appears in Woodside Homes's standard purchase agreement, which is generally presented on a take-it-or-leave-it basis.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Woodside Homes's operating states.
| State | Status | Note |
|---|---|---|
| Utah | Likely Enforceable | Class action waivers in Utah residential construction contracts are likely enforceable, consistent with U.S. Supreme Court precedent in AT&T Mobility v. Concepcion. |
| Nevada | Likely Enforceable | Class action waivers in Nevada residential construction contracts are likely enforceable under federal precedent. |
| Arizona | Likely Enforceable | Class action waivers in Arizona residential construction contracts are likely enforceable under federal and state precedent. |
| Idaho | Likely Enforceable | Class action waivers in Idaho residential construction contracts are likely enforceable under federal and state precedent. |
Related Clauses in Woodside Homes Contracts
This clause often works in combination with other provisions in Woodside Homes's purchase agreements.
The arbitration clause and class action waiver work together to require individual dispute resolution in private proceedings.
Community-wide habitability issues cannot be pursued as class claims due to the class action waiver.
What Buyers Can Do
- Understand the financial impact of individual dispute resolution. Without the ability to join a class action, each buyer must bear the full cost of pursuing claims individually. For smaller defects, the cost of arbitration may exceed the value of the claim.
- Connect with other buyers in your community. Even without a formal class action, sharing information with neighbors about common defects can help identify patterns and strengthen individual claims.
- Request modification of the class action waiver in writing. While unlikely to succeed, a written request to strike or modify the class action waiver creates a record that the provision was not freely negotiated.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions that collectively limit buyer remedies. A contract scan can identify all of them.