Texas Supreme Court

In Re American Homestar of Lancaster, Inc. and Nationwide Housing Systems, Inc., Relators

June 7, 200144 Tex. Sup. Ct. J. 815

Summary

The Texas Supreme Court held that the Magnuson‑Moss Warranty Act does not preempt the Federal Arbitration Act and therefore does not bar enforcement of predispute binding arbitration agreements in consumer warranty disputes. Accordingly, the trial court’s order compelling arbitration was not an abuse of discretion, the appellate court’s mandamus order was reversed, and mandamus relief was conditionally granted.