Substantive unconscionability deals with the actual terms of the agreement and determines whether the terms are oppressive to the weaker party. The Court of Appeal indicated that in order for the arbitration provision to have been ruled unconscionable, it must be procedurally unconscionable as well substantively unconscionable. Therefore, she argued that the petition to compel binding arbitration was not enforceable because it was unconscionable and did not comply with applicable statutory requirements. This is not the scenario that the HOA laid out for Mansouri when she rejected the offer to arbitrate. The third arbitrator was to be chosen by the first two arbitrators.
The first arbitrator was to be chosen by the HOA, the second to be chosen by the homeowner (in this case, Mansouri). The CC&R's arbitration provision clearly provided for a three arbitrator panel. The court also granted over $8,000 in attorneys fees to the HOA.
Hoa ccr trial#
The trial court granted the HOA's petition to compel binding arbitration. The HOA sought to compel binding arbitration against Mansouri since the CC&R's called for arbitration. The HOA requested that Mansouri submit this dispute to binding arbitration to a single arbitratator that the HOA would select. The Fleur Du Lac Estates Association ("HOA") felt that Mansouri went outside of the approved plans, encroached on common areas, interfered with a drainage channel and interfered with the privacy of neighboring units. This particular case came about because Zari Mansouri ("Mansouri") remodeled her patio area. The Superior Court of Placer County case, it is seen how not complying with the CC&R's can be costly. It is very important for all parties to read the CC&R's and comply with them to the fullest extent, particularly in the event of a disagreement. However, most planned unit developments and even established neighborhoods may have CC&R's as well. It's common knowledge that all condominiums and townhomes have CC&R's. The CC&R's can be written by the builder, developer, neighborhood association or a homeowner association. Covenants, Conditions and Restrictions ("CC&R's") are limitations and rules that are placed on a group of homes.
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