Forrester v. Penn Lyon Homes, Inc.

OPINION

DIANA GRIBBON MOTZ, Circuit Judge:

Penn Lyon Homes, Inc. and PLH Erectors, Inc. (collectively Penn Lyon) appeal from the district court’s order denying their motion to stay court proceedings and compel arbitration of Barbara and Gary Forrester’s claims against Penn Lyon. Before moving to compel arbitration, Penn Lyon engaged in extensive litigation measures that caused the Forresters actual prejudice. For this reason, Penn Lyon has defaulted the right to arbitration, and we therefore affirm.

I

On September 29, 2005, the Forresters filed a complaint in state court against Penn Lyon for…