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Jan18
Substantive Unconsionability

The following is not meant to be legal advice.

In Konig v. U-Haul Company of California, the California Court of Appeal in Los Angeles applied the California Supreme Court’s decision in Discover Bank v. Superior Court, 36 Cal. 4th 148 (2005).  The court determined that the plaintiff had failed to show that potential recoveries for class members would be predictably small amounts that would render the class action waiver substantively unconscionable.

The plaintiff alleged that his damages exceeded $25,000.  The plaintiff alleged that his claim was typical of the class claims. Because the plaintiff could not establish substantive unconscionability, the court upheld the class action waiver and the trial court’s order compelling arbitration.

 

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