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Sossamon v. Central Valley RV Outlet6/25/2004
Defendant Central Valley RV Outlet, Inc. (CVRV), appeals from an order denying its petition to compel arbitration in a dispute with plaintiffs Larry Sossamon and Carol Sossamon (collectively Sossamon). We conclude the trial court erred in denying the petition because Sossamon failed to present any evidence that the procedure utilized in obtaining the arbitration agreement resulted in either a contract of adhesion or the procedural element of unconscionability.
FACTUAL AND PROCEDURAL SUMMARY
Sossamon purchased a used motorhome from CVRV. Sossamon also purchased from CVRV a service contract with Heritage TPA, Inc. (Heritage). Ten months later Sossamon filed a complaint naming CVRV and Heritage as defendants. The complaint contained causes of action for violation of the Magnuson-Moss Warranty Act (15 U.S.C. § 2301 et seq.), violation of the Song-Beverly Consumer Warranty Act (Civ. Code, § 1790), violation of the Automobile Sales Finance Act (Civ. Code, § 2981), fraud and negligence. Sossamon sought monetary damages, as well as rescission.
Sossamon signed a separate document entitled "Arbitration Addendum" when they purchased the motorhome. This document states in full:
"We the undersigned do hereby agreee to the following modificatoin of the Retail Installment Contract and Security Agreement (`Contract') entered into on May 18th, 2002 between Larry & Dorothy Sossamon (`Buyer') and Central Valley RV Outlet, Inc. (`Seller') for the purchase of a '92 Bounder (year, model and make), serial number (if applicable) 1GBKP37NOM3316613.
"ARBITRATION. All disputes, claims, or controversies arising from or relating to the Contract or the relationships which result from the Contract, or the validity of this Arbitration Addendum (hereinafter the `Agreement'), shall be resolved by binding arbitration by one arbitrator selected by us with your consent. This Arbitration Agreement is made pursuant to a transaction involving interstate commerce, and shall be governed by the Federal Arbitration Act at 9 U.S.C. Section 1, et seq. Judgment upon the award rendered may be entered in any court having jurisdiction. The parties agree and understand that they choose arbitration instead of litigation to resolve disputes. The parties understand that they have a right or opportunity to litigate disputes in court, but that they prefer to resolve their disputes through arbitration, except as provided herein. THE PARTIES VOLUNTARILY AND KNOWINGLY WAIVE ANY RIGHT THEY HAVE TO A JURY TRIAL, EITHER PURSUANT TO ARBITRATION UNDER THIS CLAUSE OR PURSUANT TO A COURT ACTION BY US (AS PROVIDED HEREIN). The parties agree and understand that all disputes arising under case law, statutory law, and all other laws including, but not limited to, all contract, tort, and property disputes will be subject to binding arbitration in accord with this Agreement. You agree that you shall not have the right to participate as a representative or a member of any class of claimants pertaining to any claim arising from or relating to this Agreement or the Contract. The parties agree and understand that the arbitrator shall have all powers provided by law, the Contract and this Agreement. These powers shall include all legal and equitable remedies, including, but not limited to, money damages[,] declaratory relief, and injunctive relief. Notwithstanding anything hereunto the contrary, we retain an option to use judicial or non-judicial relief to enforce a security agreement relating to the property or to foreclosure on the property. Such judicial relief would take the form of a lawsuit. The institution and maintainance of any action for judicial relief in a
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