Honda Denied Arbitration in Defect Suit Over CR-V Display Screens

Honda Motor Co. lost its bid to enforce arbitration terms in vehicle-purchase contracts for two CR-V owners involved in a lawsuit over display screens that allegedly malfunction, a federal court in California ruled.

Honda didn’t sign the sales contracts, which were between the owners and the dealerships, and the defect claims don’t rely on any duty or obligation arising from them, Judge Maxine M. Chesney of the U.S. District Court for the Northern District of California said Wednesday.

The court applied California and Tennessee law in determining the issues because Honda filed its motion to compel arbitration against plaintiffs Tony ...