Sabia v. Orange County Metro Realty, Inc.
Court of Appeal of California
173 Cal. Rptr. 3d 485 (2014)
- Written by Craig Conway, LLM
Facts
Frank Sabia and eight other individuals (plaintiffs) filed a class action suit in California state court against The Home Defender Center (Home Defender) and others (defendants). Home Defender was a mortgage-foreclosure consultant. Sabia asserted an action for fraud, breach of contract, and other claims. The class alleged that Home Defender duped customers into signing loan-modification agreements that were contracts of adhesion. Sabia also alleged that Home Defender kept monies paid by the class for services that were never rendered. Additionally, the class claimed that the loan-modification agreements contained an arbitration clause that required the class members to arbitrate claims against Home Defender, but did not require Home Defender to arbitrate claims against the class members. Sabia claimed that the one-way nature of the arbitration clause made the contact unconscionable, combined with the fact that the contract was written in English and orally explained to class members in Spanish. The trial court upheld the arbitration provision. Sabia appealed.
Rule of Law
Issue
Holding and Reasoning (Rubin, J.)
Dissent (Grimes, J.)
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