Supreme Court Reverses CC&R Trend; Compels Arbitration of Construction Defect Claim
By Valentine S. Hoy and Timothy M. Hutter in The Daily Transcript
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9.06.12
California courts may be turning a corner in their attitudes toward alternative dispute resolution. At the very least, the recent decision from the state Supreme Court in Pinnacle Museum Tower Association v. Pinnacle Market Development (US), LLC, et al., S186149 (Cal. Aug. 16, 2012) will provide for enforcement of arbitration clauses contained in declarations of covenants, conditions and restrictions (CC&Rs). Previously, California courts held that such provisions could not be enforced by developers who no longer owned property in a common interest development.
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