Arbitration Decision Coming Soon

Pinnacle Museum Tower

On Tuesday, May 29, 2012, the California Supreme Court heard arguments from both sides in Pinnacle Museum Tower Association v. Pinnacle Market Development, in which the Court will decide whether a homeowners association is bound by an arbitration provision contained in its declaration of restrictions (“CC&Rs”).

The San Diego law firm HechtSolberg is arguing the Pinnacle Museum Tower Association v. Pinnacle Market Development LLC Arbitration Case before the California Supreme Court.  Jerry Goldberg, as lead counsel, is arguing the case before the Supreme Court and Susan Daly is providing input on CC&R’s and common interest development issues. Other firms have filed amicus briefs addressing related matters.

The Court’s decision is due by the end of August 2012, and could affect not only the manner in which disputes between homeowners associations and developers are resolved in a vast number of communities throughout California but also the content of governing and sales documents for those developments. Those who wish to resolve construction defect claims through alternative dispute resolution procedures are encouraged to evaluate their existing risk management programs (including SB 800 approaches and warranties). The outcome of the Pinnacle case may affect those programs.

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