July 27, 2021
In an opinion published on July 27, 2021, the California Court of Appeal, First Appellate District, upheld the denial of Moneygram’s motion to compel arbitration in a consumer case filed by GBDH. The Court of Appeal found that the arbitration clause was procedurally unconscionable, including because it was in nearly illegible 6 pt. font on the back of a money transfer order form. The Court also found it to be substantively unconscionably because it shortened the statute of limitations, required payment of higher commercial arbitration fees, and provided that the parties had to bear their own fees and costs.