Villa Milano Homeowners Ass'n v. Davorge

Opinion

SILLS, P. J.

In this case of first impression, we decide whether a developer can use a declaration of covenants, conditions and restrictions (CC&R’s) containing a binding arbitration clause as a device to preclude homeowners, and the homeowners association of which they are members, from pursuing an action for construction or design defect damages in a court of law. When homeowners purchase property subject to CC&R’s, they agree to be bound by those CC&R’s, including any arbitration clause contained therein. But that agreement, like any other, will not be enforced if it is *823unconscionable…