05-16-11 ALON FRUMER, ET AL. VS. NATIONAL HOME INSURANCE COMPANY, ET AL.
A-1379-10T4
The primary issue in this appeal is whether binding arbitration is the exclusive remedy for a dispute involving claims covered by a new home buyer's warranty issued by a private warranty plan. We conclude the warranty provides an election of remedies for a dispute involving a workmanship/systems defects claim; however, where the homeowner files a claim against the warranty, binding arbitration is the exclusive remedy. We also conclude the warranty provides no election of remedies for a dispute involving a major structural defects claim and binding arbitration is the exclusive remedy.
