Tuesday, October 11, 2016

No Arb for Trailer Park

Penilla v. Westmont Corp., No. B262097 (D2d4 Sept. 9, 2016)

The court here finds an arbitration provision in a mobile home park rental agreement to be unconscionable. Procedurally unconscionable in that it did not disclose the expensive fees that a claimant would be expected to shoulder and because it was not provided in Spanish or explained to renters who couldn’t read English. And substantively unconscionable because it imposed steep fees to deter the residents from asserting claims and unreasonably shortened the statute of limitations. So the trial court correctly denied the park owner’s motion to compel. 

Affirmed.

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