Published on: October 16, 2012
California Supreme Court upholds Arbitration Provision
On August 16, 2012, California Supreme Court in the case of Pinnacle Museum Tower Association v. Pinnacle Market Development held that a covenant to arbitrate with the developer in homeowner association documents is properly enforceable against the association, and is not void as against public policy. In so deciding, the Supreme Court reversed an earlier decision of the California Court of Appeals the arbitration provision unenforceable.
This issue has not been litigated in Massachusetts to date, but may very soon, as more and more developers are including arbitration provisions in condominium documents. Accordingly, this California case, may be applicable to Massachusetts, Rhode Island and New Hampshire condominium associations and disputes in the future.