Arbitration Clauses Are Enforceable Despite Waiver Of Classwide Arbitration Rights

Flores v. West Covina Auto Group, 2013 WL 139200 (Cal. App. Jan. 11, 2013)

Israel Flores and Andrea Naasz sued West Covina Toyota (WCT) and Toyota Motor Sales for selling them a "lemon," alleging both individual and class action claims, including claims for violations of the Consumer Legal Remedies Act (CLRA).  WCT filed a motion to compel arbitration and enforce the class action waiver contained in the arbitration clause of the parties' preprinted form contract.  Flores and Naasz opposed the motion, contending that the CLRA, which grants consumers the right to file class actions to enforce the CLRA's terms, barred enforcement of the class action waiver.  Flores and Naasz also contended that the arbitration agreement was unconscionable and thus unenforceable.  The trial court granted WCT's motion and compelled arbitration.  The Court of Appeal affirmed, extending the U.S. Supreme Court's decision in AT&T Mobility, Inc. v. Concepcion, 131 S. Ct. 1740 (2011) by