KB Home Class Action
This is a link to the Complaint filed by KB Homeowners in the United States District for the Southern District of Texas-Laredo division. In that case, Homeowners requested a restraining order that would prohibit KB Home from attempting to force any homeowner to binding arbitration over their warranty claims. The Federal Trade Commission under Bush Administration control filed a brief with the Federal Court taking the position that homeowners should not be allowed to enforce the 1979 Federal Court Order prohibiting KB Home from imposing "binding arbitration" on unwary homeowners. In the 1979 case, the FTC outlined many areas of fraud, misrepresentation and homeowners abuse by KB Home, resulting in the Federal Court Order insuring Homeowners Rights to go to Court to protect their Rights.
1979 Federal Court Consent Decree
Eventually the Laredo Federal Court abstained from jurisdiction over the case and it was then filed in Texas State District Court in Laredo. The State Court action resulted in a Texas Wide Injunction prohibiting KB Home from demanding enforcement of the mandatory binding arbitration clause in it's Home Warranty. State Court Petition & Order Approving Settlement