Coffee Script TypeError in compiler when running Mocha.js unit tests

So I am trying to run unit tests with Mocha and Chai that are written in CoffeeScript. I know that Mocha has exclude coffeescript since 1.0 so I am passing the compiler flag mocha --compilers coffee:coffee-script. What ends up happening is that whenever I try to require a file in the test the compiler complains with this error. Otherwise it runs fine.

/usr/local/lib/coffee-script/lib/coffee-script.js:36
      throw err;
            ^
TypeError: In /Users/chietala/workspaces/twl/test/buttonTest.coffee, Array.prototype.indexOf called on null or undefined
    at indexOf (native)
    at Assign.exports.Assign.Assign.isStatement (/usr/local/lib/coffee-script/lib/nodes.js:1147:72)
    at Block.exports.Block.Block.compileNode (/usr/local/lib/coffee-script/lib/nodes.js:262:27)
    at Block.exports.Block.Block.compileWithDeclarations (/usr/local/lib/coffee-script/lib/nodes.js:308:19)
    at Block.exports.Block.Block.compileRoot (/usr/local/lib/coffee-script/lib/nodes.js:282:19)
    at Block.exports.Block.Block.compile (/usr/local/lib/coffee-script/lib/nodes.js:244:21)
    at exports.compile.compile (/usr/local/lib/coffee-script/lib/coffee-script.js:31:51)
    at Object.require.extensions..coffee (/usr/local/lib/coffee-script/lib/coffee-script.js:13:17)
    at Module.load (module.js:356:32)
    at Function.Module._load (module.js:312:12)
    at Module.require (module.js:362:17)
    at require (module.js:378:17)
    at /usr/local/lib/node_modules/mocha/bin/_mocha:300:27
    at Array.forEach (native)
    at load (/usr/local/lib/node_modules/mocha/bin/_mocha:297:9)
    at Object.<anonymous> (/usr/local/lib/node_modules/mocha/bin/_mocha:288:1)
    at Module._compile (module.js:449:26)
    at Object.Module._extensions..js (module.js:467:10)
    at Module.load (module.js:356:32)
    at Function.Module._load (module.js:312:12)
    at Module.runMain (module.js:487:10)
    at process.startup.processNextTick.process._tickCallback (node.js:244:9)

All thats in my test file is the following

  ButtonConsumer = require '../button/base/coffee/ButtonConsumer'

And ButtonConsumer looks like this.

 class ButtonConsumer
  constructor: ->

directory structure is

/
   test
      buttonTest.coffee
   button
      base
        coffee
           ButtonConsumer.coffee

It's pretty bare bones that's why I'm really confused. I'm running Node v0.8.1, Coffeescript v1.2.0, and mocha 1.2.2.

Mocha does not work with CoffeeScript 1.2. Upgraded to 1.3.3 works fine.