Press Release: Rep. Johnson calls for investigation of homebuilders
Rep. Hank Johnson (GA-04) urged Georgia Attorney General Thurbert Baker to investigate practices of homebuilders and their use of pre-dispute arbitration clauses in a letter he sent the state’s top lawyer. Citing the example of a Marietta couple (Greg & Kim Cole) who appeared in the Atlanta Journal-Constitution Feb. 2009, Johnson told Baker the family was devastated aftera $429,000 new home they purchased became so dangerously overrun with mold that “they were forced to sleep in cars, tents and friends’ homes.”

FOR IMMEDIATE RELEASE                                            Contact:  Andy Phelan
October 6, 2009                                                                   404-593-9126

Rep. Johnson calls for investigation of homebuilders 

WASHINGTON  – Rep. Hank Johnson (GA-04) urged Georgia Attorney General Thurbert Baker to investigate practices of homebuilders and their use of pre-dispute arbitration clauses in a letter he sent the state’s top lawyer. 

Citing the example of a Marietta couple who appeared in the Atlanta Journal-Constitution Feb. 2009, Johnson told Baker the family was devastated after a $429,000 new home they purchased became so dangerously overrun with mold that “they were forced to sleep in cars, tents and friends’ homes.”

Because consumers are required to sign a contract that any dispute with a company must be resolved by forced arbitration when purchasing a home, car, credit cards and hundreds of other products and services, the family had no recourse but to pursue the arbitration process.

Even in the face of overwhelming evidence that the new home was poorly constructed and the family severely harmed by mold and other health problems, the arbitrators found in favor of the builder.

“This is not an isolated incident,” said Johnson, who is the author of the Arbitration Fairness Act of 2009 that would allow consumers to redress their grievances in court. “There are hundreds if not thousands of other cases like this all over the country. This and other cases demonstrate a gross abuse of an already flawed arbitration system, and I encourage you to look into it further.”

The Federal Arbitration Act was passed more than 70 years ago as an alternative to resolve disputes between similar businesses, but “has now found its way into consumer agreements,” said Johnson.

“In order to buy a home, car, get a new job or even buy a cell phone, consumer must sign away their right to a trial. That’s simply unfair, and the American people overwhelming agree arbitration is a problematic system that’s got to go.”  
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