Noohi v. Toll Bros., Inc.
Plaintiffs, prospective luxury home buyers, alleged that Toll Brothers, a real estate development company, unlawfully refused to return deposits when plaintiffs could not obtain mortgage financing. The district court denied Toll Brothers' motion to dismiss or stay the suit pending arbitration, finding that the Agreement of Sale's arbitration provision lacked mutuality of consideration under Maryland law because it required only the buyer - but not the seller - to submit disputes to arbitration. The court held that the appeal was properly before it under 9 U.S.C. 16(a), and that the Agreement of Sale's arbitration provision was unenforceable for lack of mutual consideration under Maryland law. Accordingly, the court affirmed the judgment. View "Noohi v. Toll Bros., Inc." on Justia Law