Search This Blog

Monday, June 17, 2013

Vargas v. SAI Monrovia B, Inc.: Court Finds Arbitration Clause In Automobile Purchase Contract Unconscionable

In Vargas v. SAI Monrovia B, Inc. (6/4/13) --- Cal.App.4th ---, the Court of Appeal again addressed a standard automobile retail installment sales contract, finding that it was unconscionable and unenforceable:
In this appeal, we revisit our holding in Sanchez v. Valencia Holding Co., LLC (2012) 201 Cal.App.4th 74 (Sanchez), review granted March 21, 2012, S199119, that a “Retail Installment Sale Contract” used to purchase an automobile is unconscionable and unenforceable. Having considered the decisions of other California appellate courts handed down after Sanchez, we have refined our analysis and again conclude that the identical sale contract does not require the arbitration of disputes between a purchaser and a car dealer because it is permeated by unconscionability.  
Slip op. at 1. 

Is the Court of Appeal attempting to influence the Supreme Court's decision in Sanchez?  Perhaps.  In any case, I assume that the Supreme Court will grant review and hold Vargas pending Sanchez.  

Our discussion of Sanchez is available here. The opinion is 
Vargas v. SAI Monrovia B, Inc. is available here

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.