In Satomi Owners Association v. Satomi, LLC (2009), the Washington Supreme Court was faced with an important constitutional issue as to whether the Federal Arbitration Act preempts the judicial enforcement provision of the Washington Condominium Act.

The case arose out of the allegedly defective construction of two condo projects in King County. The condominium owner's associations brought construction defect claims under the Washington Condominium Act against the condo developers and contractors.

The developers and contractors argued that such claims had to be arbitrated because of the arbitration clause in the parties' respective contracts and the strong federal policy favoring enforcement of arbitration provisions under the Federal Arbitration Act. The condominium owner's associations argued that construction defect claims were beyond the scope of the contractual arbitration clauses, relying on the express judicial enforcement provision in the Washington Condominium Act.

The Washington Supreme Court wrestled with the apparent conflict between the federal and state laws, and ultimately held that the judicial enforcement provision of the Washington Condominium Act was preempted by federal law. Thus, when there is an arbitration provision in the parties' contract, the proper forum for condo construction defect claims is arbitration, not state court.

However, Satomi Owners Association v. Satomi, LLC does not render the judicial enforcement provision of the Washington Condominium Act completely toothless. Where the parties contract does not contain an arbitration clause, the judicial enforcement provision still applies and condo construction defect claims may be brought in state court.

Satomi Owners Association v. Satomi, LLC ought to be considered in drafting and negotiating any condo construction contract. The decision provides an increased level of certainty in contracting for alternative dispute resolution and a strong signal as to how courts will likely construe the scope of an arbitration clause in the context of condo construction.

The Spokane Home Builders Association has assembled a group of well-known residential construction firms to build six green residences to display at the 2010 Spokane Certified Built Green Home Show. The green builders involved in the home show include George White Homes, Brent Peterson Homes, and Greenstone Homes.

The sustainable and energy efficient homes will be built in the River District of Liberty Lake, WA. The homes will be open to the public for touring from June 18-27. The show will include a mix of both custom designed and spec homes.

To kick off the event the Spokane Home Builders Association is holding a groundbreaking ceremony at 1980 N. Holl Blvd. in Liberty Lake, WA this Thursday, March 4, 2010 at 10:00 a.m. Anyone interested in green building is welcome to attend this exciting event.

The 2010 Spokane Certified Built Green Home Show will provide a glimpse of the future of residential construction. As energy resources become increasingly scarce and costly, consumers are beginning to see the multitude of benefits that green residences offer. The Spokane Home Builders Association should be commended for taking a leadership role in promoting more sustainable and energy efficient residential structures.