Originally from:

Journal of American Arbitration (JAA) - Vol. 2, No. 1

Preview Page

ARTICLES

The Fifth Circuit Upholds Arbitrability of Written Warranties
Under the Magnuson-Moss Warranty Act in Walton v. Rose
Mobile Homes L.L.C.
By Paula Cino

I. OVERVIEW
Mobile home purchasers, Thomas and Le’Ellen Walton (Waltons),
filed a lawsuit against Southern Energy Homes, Inc. (Southern Energy)
and Rose Mobile Homes (Rose) in the Circuit Court of Kemper County,
Mississippi, alleging a violation of the Magnuson-Moss Warranty Act
(MMWA)1 negligence, breach of contract, and breach of express and
implied warranties.2 Upon purchasing their mobile home from Rose, the
retail seller, Southern Energy, the manufacturer, issued the Waltons a
one-year warranty against defects in material and workmanship.3 This
warranty included a provision requiring the warranty holder to submit all
“claims under the warranty to binding arbitration.”4 After removing the
case to federal district court, Rose and Southern Energy filed motions to
enjoin court action and compel arbitration of the Waltons’ claims under
the Federal Arbitration Act (FAA)5 pursuant to the warranty’s arbitration
provision.6
The district court denied Southern Energy and Rose’s motions to
compel arbitration in the case of any claims arising under the MMWA,
concluding that the MMWA precluded the enforcement of binding
arbitration provisions included in express written warranties.7
Subsequently, Southern Energy appealed the district court’s denial of its