Roberts v. El Cajon Motors, Inc.
200 Cal. App. 4th 832
| Cal. Ct. App. | 2011Background
- Yaube Roberts sued El Cajon Ford (El Cajon) and Crescent Bank in 2009 alleging ASEA and UCL violations and seeking class treatment.
- Roberts claimed multiple RISCs for the same vehicle with misdated final RISCs and improper APR/finance charge disclosures.
- Roberts proposed two classes: Class 1—customers with rewritten dating of RISCs and higher APR; Class 2—down payment deferral not disclosed with finance charges.
- El Cajon answered and engaged in extensive discovery; it did not raise arbitration as a defense in its answer.
- El Cajon sent settlement letters to putative class members and issued checks to resolve some claims, without invoking arbitration.
- Roberts moved to compel arbitration; the trial court denied, finding waiver/forfeiture of arbitration and, alternatively, unconscionability.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did El Cajon waive arbitration? | Roberts | El Cajon | Waiver upheld; right to arbitrate forfeited |
| Is the arbitration clause enforceable despite waiver concerns? | Roberts | El Cajon | Court assumed waiver but found conduct still supported waiver analysis |
| Did El Cajon’s five-month delay prejudice Roberts? | Roberts | El Cajon | Delay, combined with conduct, prejudiced Roberts and supported waiver |
| Were El Cajon’s settlement letters with putative class members relevant to waiver? | Roberts | El Cajon | Letters and settlements seen as inconsistent with arbitration intent and prejudicial |
| Does Concepcion affect the waiver result or arbitration validity? | Roberts | El Cajon | Concepcion acknowledged but did not prevent waiver here; waiver still found |
Key Cases Cited
- St. Agnes Medical Center v. PacificCare of California, 31 Cal.4th 1187 (Cal. 2003) (waiver analysis in arbitration context; factors and prejudice)
- Burton v. Cruise, 190 Cal.App.4th 939 (Cal. App. 2010) (delay in seeking arbitration can constitute waiver/prejudice)
- Keating v. Superior Court, 31 Cal.3d 584 (Cal. 1982) (arbitration waiver standards; multiple tests)
- Groom v. Health Net, 82 Cal.App.4th 1189 (Cal. App. 2000) (delay and procedural issues in arbitration context)
- Sobremonte v. Superior Court, 61 Cal.App.4th 980 (Cal. App. 1998) (prejudice and waiver considerations in arbitration)
- Discover Bank v. Superior Court, 36 Cal.4th 148 (Cal. 2005) (unconscionability of class-action waivers in arbitration)
- Concepcion, 563 U.S. 333 (U.S. 2011) (FAA preemption of California unconscionability on class waivers)
- Mission Viejo Emergency Medical Associates v. Beta Healthcare Group, 197 Cal.App.4th 1146 (Cal. App. 2011) (arbitration unconscionability considerations preserved under Concepcion)