This note addresses the lawsuit described above, Elliott v. KB Home N.C., Inc., concerning whether KB Home waived its contractual right to arbitration by waiting three years to assert that right, which ultimately prejudiced a class of plaintiffs pursuing litigation against it. After examining how North Carolina courts decide whether to compel arbitration, this note will analyze the four-factor test North Carolina courts use to determine whether a party has sat on its right to arbitrate for too long, subjecting itself to waiver of arbitration. Finally, this note contends that North Carolina's four-factor test, as opposed to a bright-line rule, is the superior method for protecting against prejudice and for upholding the policy favoring arbitration.
Waiving Goodbye to Arbitration: Factoring Prejudice When a Party Delays Assertion of Its Contractual Right to Arbitrate: Elliot v. KB Home N.C., Inc.,
2013 J. Disp. Resol.
Available at: https://scholarship.law.missouri.edu/jdr/vol2013/iss2/8