Texas Supreme Court

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

June 9, 200649 Tex. Sup. Ct. J. 711

Summary

The Texas Supreme Court held that the arbitration agreement between the Ripples and the retailer was valid, enforceable, and extended to the manufacturer despite the manufacturer’s opt‑out right; therefore the Ripples must arbitrate their claims against both the retailer and the manufacturer. The Court rejected the Ripples’ arguments that the agreement lacked consideration, was illusory, or was unconscionable, and granted a writ of mandamus directing the trial court to compel arbitration.