A California court of appeals overturned the trial court’s decision that a standardized home purchase contract which required homeowners to give notice and an opportunity to correct any construction defects, and then to mediate prior to filing litigation against the builder, was an unconscionable contract of adhesion and violated California’s 2002 Right to Repair Act. The appellate court found that there was nothing unfairly one-sided about the mediation terms, as required for a contract to be unconscionable.
McCaffrey Group, Inc. v. Cital, No. F066080 (Cal. C.A. 5th Dist., March 24, 2014)
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