Bolter v. Superior Court

In Bolter v. Superior Court (2001) 87 Cal.App.4th 900, the trial court concluded a provision in a franchise agreement compelling any arbitration to be held in Utah was not unconscionable and issued an order to dismiss the superior court action. In effect, the clause required franchisees to "close down their shops, pay for airfare and accommodations in Utah, and absorb the increased costs associated in having counsel familiar with Utah law." (Id. at 909.) The franchisees filed a writ petition challenging the trial court's ruling, and we issued an order to show cause and a temporary stay of the arbitration. The facts were not in dispute. Standing in the trial court's shoes, we reviewed the matter de novo, concluding the unconscionable provisions could be severed, "and the rest of the agreement enforced." (Id. at p. 910.) Thus, the unconscionability could be "cured by striking those provisions, leaving an otherwise valid and complete agreement to submit disputes to arbitration." (Id. at p. 911.)