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  5. 920 S.W.2d 398 (1996)
 

EMERALD TEXAS, INC. v. PEEL

No. 01-95-01286-CV.

920 S.W.2d 398 (1996)

EMERALD TEXAS, INC., Appellant, v. Robert PEEL and Cynthia Peel, Appellees.

Court of Appeals of Texas, Houston (1st Dist.).

February 22, 1996.

Attorney(s) appearing for the Case

Pamela Jane Batterson, Chris E. Ryman, Michael O. Whitmire, Houston, for appellant.

Otto D. Hewitt, III, Alvin, Richard Warren Mithoff, Houston, for appellees.

Before COHEN, O'CONNOR and WILSON, JJ., concur.

OPINION

COHEN, Justice.

Emerald Texas, Inc. (Emerald) appeals the denial of its plea in abatement and motion to compel arbitration.

On November 21, 1993, Robert W. Peel and Cynthia J. Peel (the Peels) entered into a "New Home Earnest Money Contract, Conventional Loan" with Emerald for the construction of a new house. Construction was completed in early 1994.

In May 1995, the Peels sued, alleging Emerald had entered into the contract

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