Category: Arbitration: Automobiles

Automobiles, Consumers: Buyer’s Arbitration Award Exceeded $100K, And Auto Dealer Gets A “Do-Over” If Not Exactly An Appeal

Dealer Wanted To Go To Three-Arbitrator Panel After Receiving Adverse Arbitration Award, And Everyone Agreed That ADR Arbitral Forum Lacked “Appellate” Rules.  So?       Plenty of arbitration disputes arise from arbitration clauses in auto sales contracts and leases – hence our sidebar category, “Automobiles.”.  Here’s an unusual one, based on fairly common arbitration provisions.  Condon […]

Automobiles, Waiver, FAA, Class: Federal Arbitration Act Preempts Application Of Consumers Legal Remedies Act

Court Distinguishes Imburgia v. DIRECTV, Inc., Case Pending Before SCOTUS.        Automobile purchases and leases have generated quite a few disputes about the enforcement of arbitration clauses.  Exhibit 1:  The Sanchez case decided by the California Supreme Court on August 3, about which I posted on August 4, 2015.  We have a sidebar category for […]

Class Actions, Unconscionability, Automobiles: California Supreme Court Reverses Court of Appeal, Enforces Class Action Waiver, Holds Automobile Sales Contract Is Not Unconscionable

Application of Concepcion Is Decisive.      At last, the California Supreme Court has decided Sanchez v. Valencia Holding Company, LLC, S199119 (Cal. Sup. Ct. Aug. 3, 2015) (Liu, J., author).  The case has been pending since Defendant and Appellant Valencia filed its petition for review on January 4, 2012.  The majority opinion, authored by Justice […]

Arbitration, Automobiles, Enforceability: Fraud In The Inception Means No Enforceable Arbitration Agreement

Automobile Trade-In Goes Sideways.     Above:  Old car and truck outside the “Vehicles-You-Deserve” Used Car Dealership in Mesquite, Texas.  Photographer:  Carol M. Highsmith.  2014.  Library of Congress.       At first glance, this seems like a fairly common scenario.  A daughter trades in her father’s used car for a new one, and payments are not made […]

Automobiles: On Balance, Arbitration Provisions In Auto Sales Contract Are Found Not To Be Unconscionable

January 8, 2015 · Arbitration: Automobiles

Unconscionability Challenge To Identical Arbitration Provision In Industry-Drafted Automobile Sales Contract Is Still Pending In Sanchez Before California Supreme Court.       Our next case is a fine example of ad hoc justice, for the Court of Appeal concludes that “on balance”, the arbitration provisions in a standard automobile industry sales contract are not unconscionable.  A […]

Arbitration/Automobiles/Severability/Unconscionability/FAA: Case Is Remanded So Trial Court May Determine Whether Unconscionable Provisions In Automobile Installment Sale Contract Are Severable

  Sixth District Does Agree That Federal Arbitration Act Preempts California Consumers Legal Remedies Act, So Class Action Waiver In Arbitration Clause Is Enforceable      Jalopy that has seen better days.  Carol M. Highsmith, photographer.  Library of Congress.       An arbitration clause that is “permeated with unconscionability” need not be enforced.  Here, the scorecard in […]

Arbitration/Unconscionability/Automobiles: Fourth District, Div. 3 Finds Arbitration Provision In Common Automobile Sales Contract To Be Unconscionable

  An Opportunity To Enjoy Some Vintage Justice Bedsworth      The unconscionability issue concerning the Retail Installment Sales Contract in the next case is currently pending before the California Supreme Court In Sanchez v. Valencia Holding Co., 201 Cal.App.4th 74 (2011), review granted March 21, 2012 (S199119) and several related cases.  In an opinion authored […]

Arbitrations/Automobiles: Fourth District, Division 2, Finds Form Purchase And Sale Agreement Used By Many New Car Dealers Not Unconscionable

November 2, 2013 · Arbitration: Automobiles

Appellate Opinion Is Divided And Issue Is Before The California Supreme Court Automobile wreck.  Between 1918 and 1920.  Library of Congress.      The Fourth District, Division 2, has added one more appellate opinion to the mix of opinions concerning whether a form purchase and sale contract used by many new car dealers in California and […]

Arbitration/Automobiles/Unconscionability: Second District, Div. 1 Revisits Ruling In Sanchez v. Valencia Holding Company, And Again Concludes That Arbitration Provision In Automobile Sales Contract Is Unconscionable

Split In Appellate Opinion      I have a separate sidebar category on “automobiles” because the auto industry spawns many decisions about the enforceability of arbitration clauses in sales contracts.  As I have previously posted on August 26, 2012, and January 7, 2013, Sanchez v. Valencia Holding Co. LLC, 201 Cal.App.4th 74 (2012) is pending before […]

Arbitration/Automobiles/Unconscionability: Arbitration Provision In Automobile Purchase Held Procedurally But Not Substantively Unconscionable

“Sliding Scale” Unconscionability Analysis Saves Arbitration Provision       In a published decision, the Court of Appeal reverses the trial court’s denial of a petition to compel arbitration based on an automobile purchase contract.  Vasquez v. Greene Motors, Inc., Case No. A134289 (1st Dist. Div. 1 March 27, 2013) (Margulies, Acting P.J., author 3:0) (published).       […]