Campos v. Homes by Joe Boyden, L.L.C

2006 NMCA 086, 140 P.3d 543, 140 N.M. 122
CourtNew Mexico Court of Appeals
DecidedMay 22, 2006
Docket25,228
StatusPublished
Cited by8 cases

This text of 2006 NMCA 086 (Campos v. Homes by Joe Boyden, L.L.C) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Campos v. Homes by Joe Boyden, L.L.C, 2006 NMCA 086, 140 P.3d 543, 140 N.M. 122 (N.M. Ct. App. 2006).

Opinion

OPINION

SUTIN, Judge.

{1} Plaintiffs purchased residential lots subdivided by Defendant Homes by Joe Boy-den, L.L.C. (Boyden Homes) and homes later constructed on those lots by Defendant Joe Boyden Construction, Inc. (Boyden Construction). The purchases involved various contract documents between Plaintiffs and either Boyden Homes or Boyden Construction. Defendant Prudential Southwest Realty, a/k/a Prudential Preferred Properties (Prudential), was the real estate broker that represented the lots and the homes to be constructed by Boyden Construction.

{2} Plaintiffs sued Defendants in tort and contract because, after their homes were constructed, Plaintiffs discovered that an undeveloped area bordering on their lots and homes was going to be developed with residences, contrary to Prudential’s representation that the area was city land that would remain open space with no residential development. The litigation immediately focused on whether an arbitration provision in one of the contractual documents controlled, thereby requiring the lawsuit to be stayed pending arbitration. The district court ruled that Plaintiffs’ claims did not fall within the scope of the arbitration provision and denied the motion of the Boyden Defendants to dismiss or compel arbitration. The Boyden Defendants appeal that determination. See NMSA 1978, § 44-7A-29(a)(1) (2001) (permitting an appeal from an order denying a motion to compel arbitration). We affirm the district court’s denial of the motion to compel arbitration.

BACKGROUND

{3} Plaintiffs first entered into a new construction purchase agreement for their respective lots and homes. Paragraph 10 of that agreement stated that the seller, Boy-den Homes, would provide a home warranty at its expense “to remedy any substantial defect in workmanship or materials of the dwelling.” The paragraph also provided that the seller would provide a “2-10 Home Buyers Warranty.” Plaintiffs each signed a form called “Builder Application for Home Enrollment” (the enrollment form). The enrollment forms were submitted to an entity called the Home Buyers Warranty Corporation (HBW) for the purpose of completing Plaintiffs’ enrollment in the 2-10 warranty program. Boyden Homes was a “Builder-Member” of HBW. The enrollment form contains the following provision:

HOME BUYERS ACKNOWLEDGEMENT AND CONSENT
Your Builder is applying to enroll your home in the HBW-insured warranty program. By signing below, you acknowledge that you have viewed and received a video of “Warranty Teamwork: You, Your Builder & HBW”, you have read the Builder’s Copy of the Warranty Booklet, and CONSENT TO THE TERMS OF THESE DOCUMENTS INCLUDING THE BINDING ARBITRATION PROVISION contained therein. You further understand that when the warranty is issued on your new home, it is an Express Limited Warranty and that all claims and liabilities are limited to and by the terms and conditions of the Express Limited Warranty as stated in the HBW Warranty Booklet. IF YOU, THE HOMEBUYER(S) HAVE NOT RECEIVED A CERTIFICATE OF WARRANTY COVERAGE AND A WARRANTY BOOKLET FROM HBW WITHIN THIRTY (30) DAYS AFTER CLOSING, THEN NO WARRANTY EXISTS ON THE HOME AT THIS ADDRESS.

Plaintiffs received a certificate of warranty coverage showing that Boyden Homes had enrolled each of Plaintiffs’ homes in the warranty program, and also received HBW Insurance Services, L.L.C.’s thirty-two page warranty booklet.

{4} The arbitration provision at issue in this case is in the warranty booklet. It states among other things that the parties agree to arbitrate:

Any and all claims, disputes and controversies by or between the Homeowner, the Builder, the Warranty Insurer and/or HBW, or any combination of the foregoing, arising from or related to this Warranty, to the subject Home, to any defect in or to the subject Home or the real property on which the subject Home is situated, or the sale of the subject Home by the Builder, including without limitation, any claim of breach of contract, negligent or intentional misrepresentation or nondisclosure in the inducement, execution or performance of any contract, including this arbitration agreement, and breach of any alleged duty of good faith and fair dealing!)]

{5} The warranty booklet contains various warranties relating to defects and defines “defect” as a “failure to meet the Construction Quality Standards for workmanship and systems as set forth in this Agreement.” The warranty booklet also provides that if the home buyer believes the home has a defect that is covered under the warranty, reports the defect, and the issue is not resolved, HBW will provide a form to request arbitration.

{6} The crux of Plaintiffs’ various claims in tort and contract is representations regarding open space just beyond their backyard walls next to their homes. The Boyden Defendants contend that the broadly worded arbitration agreement, including particularly the language regarding misrepresentations in home sales, applies to all of Plaintiffs’ claims because the claims reasonably relate to the contract documents. See K.L. House Constr. Co. v. City of Albuquerque, 91 N.M. 492, 494, 576 P.2d 752, 754 (1978) (“When the parties agree to arbitrate any potential claims or disputes arising out of their relationships by contract or otherwise, the arbitration agreement will be given broad interpretation unless the parties themselves limit arbitration to specific areas or matters.”). The Boyden Defendants therefore assert that the district court erred in refusing to compel arbitration of Plaintiffs’ claims.

STANDARD OF REVIEW

{7} The parties do not argue that factual issues exist and they rely only on interpretation of documentary evidence. We therefore review the district court’s interpretation of the arbitration agreement de novo. Horanburg v. Felter, 2004-NMCA-121, ¶ 8, 136 N.M. 435, 99 P.3d 685.

DISCUSSION

{8} The warranty for Plaintiffs’ properties is the focus of our analysis. The certificate of warranty coverage states that Plaintiffs were enrolled in a specific warranty program, including “One Year Workmanship/Two Year Systems/Ten Year Structural” warranties. This certificate states that the enrollment form, the certificate, and the warranty booklet “make up your warranty contract.” The warranty booklet sets out the one-year workmanship, the two-year systems, and ten-year structural “express limited” warranties. The warranty booklet states:

This Warranty Booklet and your Certificate of Warranty Coverage is your Builder’s Limited Warranty to you. Your Builder warrants that, within the limitations described in these two documents, your Home will be free from qualifying structural defects, and if so indicated on your Certificate of Warranty Coverage, will also be free from defects in workmanship and systems.

The warranty booklet focuses on defects and the repair and replacement of any covered defects.

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Cite This Page — Counsel Stack

Bluebook (online)
2006 NMCA 086, 140 P.3d 543, 140 N.M. 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campos-v-homes-by-joe-boyden-llc-nmctapp-2006.