In Re Palm Harbor Homes, Inc., and Palm Harbor Homes I, L.p. D/b/a Palm Harbor Village, Relator

Summary

The Texas Supreme Court held that the arbitration agreement between the home purchasers and the retailer, which also benefited the manufacturer, was enforceable; the manufacturer’s opt‑out right did not render the agreement illusory, and the purchasers must arbitrate their claims against both retailer and manufacturer. The Court reversed the trial court’s denial of arbitration and directed it to compel arbitration.