Woodside Homes of California, Inc. v. Superior Court

In this case we are asked to determine the enforceability of a clause requiring home buyers who sue the builder to submit the dispute to binding judicial reference. In contrast to the trial court, we find the provision enforceable, and grant the relief sought by petitioner.

Statement of Facts

Petitioner Woodside Homes of California, Inc. (Woodside) is a developer of home tracts. Real parties in interest (Buyers) purchased homes from petitioner’s affiliate sales arm under standard contracts which required any lawsuit “relating to the condition, design or construction of any portion of the [purchased home]” to be submitted to judicial reference pursuant to Code of Civil Procedure sections 638, former subdivision 1, and 641 through 645.1. Among the more significant provisions for the conduct of the reference are the following: The referee is to be a retired judge or attorney with substantial experience in real estate matters; the parties shall be entitled to discovery, with the referee to supervise and enforce orders; a stenographic record of the trial is to be made, but will be confidential except as necessary for posthearing motions and appeals; the referee shall render…