United States Court of Appeals for the Fourth Circuit
709 F.3d 599 (2013)
Medhi Noohi (plaintiff) and his wife, Soheyla Bolouri (plaintiff), contracted with a subsidiary of Toll Brothers, Inc. (Toll Brothers) (defendant), a real-estate developer, for the purchase of a newly constructed luxury home. The plaintiffs provided Toll Brothers with deposits totaling over $77,000. The agreement included a clause under which the plaintiffs agreed to submit all disputes against Toll Brothers to binding arbitration. The clause did not require Toll Brothers to submit disputes against the plaintiffs to binding arbitration. Additionally, the agreement required the plaintiffs to make a good-faith effort to obtain mortgage financing, accept a loan if one was offered by a lender, and comply with other terms and conditions. If the plaintiffs were unsuccessful in obtaining financing within a specified time frame, Toll Brothers could either extend the mortgage-application period or nullify the agreement and refund the plaintiffs’ deposits. Although the plaintiffs submitted mortgage applications with several lenders, and even briefly received approval from one lender that was later rescinded, the plaintiffs were unable to secure a mortgage. Toll Brothers refused to return the plaintiffs’ deposits. The plaintiffs filed suit in federal district court against Toll Brothers and its subsidiaries, alleging breach of contract, breach of the duty of good faith and fair dealing, unjust enrichment, and unfair and deceptive trade practices in violation of Maryland law. The district court denied Toll Brothers’ motion to dismiss or to stay the plaintiffs’ complaint pending arbitration, holding that the arbitration provision was unenforceable due to lack of consideration. Toll Brothers appealed.
Rule of Law
Holding and Reasoning (Davis, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 221,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.