Originally from Dispute Resolution Journal

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On February 26, 2013, a unanimous panel of the Fourth Circuit
Court of Appeals held that an arbitration provision in a Maryland
contract for the construction of a home was unenforceable for lack of
mutual consideration. Noohi v. Toll Bros, Inc., 708 F.3d. 599 (4th Cir.
2013).

Basic Facts

When Toll Brothers refused to return Plaintiffs security deposit
because they were unable to secure financing, which was a condition
of their contract to purchase a preconstruction home in Maryland,
Plaintiffs filed a class action complaint on behalf of themselves and
home buyers across the country who similarly lost their deposits.
Federal Jurisdiction was founded on the Class Action Fairness Act, 28
U.S.C. §1332(d)(2).