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Dispute Resolution Keyed to Carbonneau, 8th Ed.
D.R. Horton, Inc. v. Green
Citation:
120 Nev. 549, 96 P.3d 1159 (2004)Facts
The Homebuyers entered into home purchase agreements with D.R. Horton that contained mandatory arbitration provisions. The agreements were two-page form contracts with very small font, with the arbitration clause located on the back page in a font smaller than that used on the front page. The provision required binding arbitration for all disputes, imposed a $10,000 penalty on buyers who initiated legal action without first seeking arbitration, and required parties to equally split arbitration costs. Green testified he only read the first page because Horton’s agent told him it was a standard contract. The Velickoffs read both sides but did not understand they were waiving their right to a jury trial or that arbitration could be more costly than standard litigation. When construction defects arose, the Homebuyers challenged the enforceability of the arbitration provision, arguing it was unconscionable.
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