Arbitration Clause Found Unconscionable by California Court of Appeals (Love it!)

From the LA County Bar Assn Ebriefs

-Civil Procedure-
Arbitration clause in used car purchase agreement was procedurally unconscionable where, according to purchaser’s unrefuted declaration, the dealer did not give purchaser the opportunity to negotiate or call his attention to the clause, which appeared on the back side of a preprinted page contract and was nowhere near the signatures. Clause was substantively unconscionable where its provisions–allowing either side to appeal an award exceeding $100,000, or any award of equitable relief; requiring party appealing an award to advance all costs of appeal proceeding; and barring arbitration in event dealer resorted to repossession or other self-help remedies–unilaterally and oppressively favored dealer. Trial court did not abuse its discretion in ruling that unconscionable provisions so permeated agreement that severance should be denied.
Goodridge v. KDF Automotive Group, Inc. – filed August 24, 2012, publication ordered September 13, 2012, Fourth District, Div. One
Cite as D060269
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