Lawsuit dismissed after election of new home warranty arbitration remedy.

The court dismissed a homeowner's suit after the homeowner initially filed a warranty claim. While the homeowner never proceeded to the available arbitration process under the New Jersey New Home Warranty and Builders’ Registration Act, the fact that a warranty claim under the Act was initiated by the homeowner was found to be enough proof for the court to determine that the homeowner elected for recourse under the warranty. The trial court dismissed the lawsuit and held that, regardless of whether or not the matter actually proceeded to an arbitration hearing, the homeowner had submitted the matter to the warranty program and therefore had initiated the procedure to enforce the warranty remedy.

Case Law Alert, 1st Qtr 2012