(PRWEB) February 28, 2003
FOR IMMEDIATE RELEASE:
For More Information Contact:
Nancy Seats, National
President of Homeowners Against Deficient Dwellings (HADD)
John R. Cobarruvias
Texas President of Homeowners Against Deficient Dwellings (HADD)
HOUSTON, TX 03/01/03. Homeowners Against Deficient Dwellings (HADD), a national non-profit consumer advocacy organization has released a new study on the use and abuse of mandatory binding arbitration clauses in new home contracts. The study, "The Abuse of Binding Arbitration in New Home Contracts. A ConsumerÂ¹s Perspective" concludes: "Contrary topopular belief, arbitration is a private, profit motivated justice system forced upon new homebuyers, and is abusive, extremely costly, grossly unfair and provides no tangible benefit to the homebuyer."
The vast majority of new homebuyers blinded by low interest rates and the excitement of owning the American dream do not realize they must give up their American rights to a trial by jury in case of a serious construction defect. Instead, homebuilders insert generic arbitration clauses in the contract without disclosing the high cost, and the loss of the buyerÂ¹s legal rights, once protected by the 7th Amendment of the Constitution.
Much of the study is based upon testimony in two interim studies conducted by the Texas House of Representatives in the Summer of 2002. After a homeowner has attempted to resolve the dispute without legal action, they quickly learn that a suit, which could hold a builder accountable, is replaced with a costly private justice system where high costs and abuse have been documented.
According to HADDÂ¹s President and Founder, Nancy Seats, "Arbitration provides ample protection for the builder through limited liability while the homeowner is punished with extreme processing fees, and grossly unfair decisions. We hope this study will be useful to State lawmakers in understanding the limited rights consumers have when dealing with an uncooperative builder and their private justice system."
"Until the laws are changed to prohibit mandatory arbitration clauses in new home contracts, the biggest investment of your life, the "American Dream" will continue to have as much protection as buying stock in Enron." says Seats.
The full report in PDF format can be downloaded from the HADD website at http://www.hadd.com/arbitration.pdf
About Homeowners Against Deficient Dwellings (HADD): HADD, a national non-profit organization incorporated in the State of Kansas, is composed of individuals from across the country that share a common bond of owning a defective home. There are over thirty HADD Representatives in 25 states advocating for quality construction, accountability, and ensuring fair laws are in place for consumers across the country. Their website can be visited at http://www.hadd.com