Noohi v. Toll Brothers, Inc.

The Noohis (plaintiffs) contracted with a Toll Brothers (defendant) subsidiary to buy a home, paying over $77,000 in deposits, under an agreement whose arbitration clause required only the Noohis, not Toll Brothers, to submit disputes to binding arbitration. When the Noohis could not secure mortgage financing despite good-faith efforts, Toll Brothers refused to return their deposits, and the Noohis sued for breach of contract and related claims; the district court denied Toll Brothers' motion to compel arbitration, finding the arbitration clause unenforceable for lack of consideration, and Toll Brothers appealed.