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California Court of Appeal


Vargas v. SAI Monrovia B, Inc., B237257

The trial court's order granting defendants' motion to compel arbitration and to strike the class action allegations is reversed, where: 1) the arbitration provision is procedurally unconscionable because it is adhesive and satisfies the elements of oppression and surprise; 2) the arbitration provision is substantively unconscionable because it contains overly harsh terms that favor the car dealer to the detriment of the buyer; 3) because the provision contains multiple invalid clauses, it is permeated by unconscionability and unenforceable; and 4) because the arbitration provision is invalid, it cannot provide a basis for striking the class allegations in the complaint.

Appellate Information

  • Decided 06/04/2013
  • Published 06/04/2013

Judges

  • MALLANO

Court

  • California Court of Appeal

Counsel

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