The Dallas Court of Appeals has held that a dispute over the construction of a custom home should be arbitrated.  In the case, In re Susan Newell Custom Home Builders, Inc., Susan Newell, Individually, and Lisa Doolitte, Relators, No. 05-13-01474-CV (Tex. App.—Dallas, Jan. 14, 2014), Lynne McGreal Tonti signed a contract with Susan Newell Custom Home Builders, Inc. (“the Company”) to build a custom house for her.  The new home contract contained an agreement to arbitrate any future disputes.

Tonti later filed a lawsuit against Susan Newell, the Company, and bookkeeper Lisa Doolittle over a number of allegedly false invoices submitted to her on behalf of the Company by Doolittle.  Although only the Company was a signatory to the contract, all three defendants sought to compel arbitration at the trial courtlevel.  The trial court granted the Company’s motion to compel arbitration, but ordered that both Newell and Doolittle must submit to six-hour depositions over the allegedly fraudulent conduct in order to determine the arbitrability of Tonti’s claims against them.  The two nonsignatories to the contract then filed a writ of mandamus with the Fifth District Court of Appeals in Dallas.

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