Arbitration Agreement Between Homeowners And Builder Does Not Bind Homeowner Association

A homeowner association is not bound by an arbitration agreement between the developer and individual homeowners where the association asserts claims on its own behalf. In Greenbriar Oceanaire Community Assoc., Inc. v. U.S. Home Corp. d/b/a Lennar, et al., the homeowner association (Association) brought an action against the defendant-developer alleging injuries to both the Association and the homeowners. The contracts between the developer and the individual homeowners contained an arbitration agreement. There was no arbitration agreement, however, between the Association and the developer. The motion judge had ruled that all claims were to be arbitrated.

The Appellate Division agreed that any claims brought on behalf of the individual homeowners must be arbitrated, per their agreement. Any claims brought by the Association on its own behalf, however, were not subject to arbitration, since the Association had never consented to arbitrate its claims. The court,