A dispute arising out of an inability to obtain a mortgage for the construction of a new million-dollar home in Maryland has resulted in a Fourth Circuit decision holding an arbitration provision unenforceable for lack of consideration. Judge Davis wrote the opinion for the court in Noohi v. Toll Bros, Inc., in which Judge King and Judge Shedd joined. Among other things, the opinion contains a discussion of appellate jurisdiction under the Federal Arbitration Act, issues of contract interpretation under Maryland law, and the Supreme Court’s decision in AT&T Mobility LLC v. Concepcion, 131 S.Ct. 1740 (2011).
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Fourth Circuit distinguishes Concepcion and holds arbitration provision unenforceable for lack of mutual consideration
February 26, 2013 by Kevin C. Walsh