Presenting An English Contract To A Spanish Speaking Legal Client Illiterate In English Was Problematic
Justo Malo Sanchez filed a legal malpractice lawsuit against Consumer Defense Legal Group and its representatives, alleging issues with the firm's handling of his case. The retainer agreement he signed contained an arbitration clause, but Sanchez argued that the agreement was unconscionable. He contended it was procedurally unconscionable because he was illiterate in English, had a limited education, and was presented with the contract in a "take it or leave it" manner without translation or explanation. It was also substantively unconscionable due to high arbitration fees, which Sanchez could not afford.
The trial court initially denied the motion to compel arbitration, citing concerns about the lack of proof of a valid agreement and the significant procedural unconscionability. After reconsideration, the court reversed its decision, granting the motion, convinced by defense arguments that Sanchez was not truly indigent and could afford arbitration fees. Sanchez then sought writ relief from the Court of Appeal, which granted the petition, ruling that the arbitration clause was both procedurally and substantively unconscionable.
The Court of Appeal agreed the contract was a standard, adhesive one and the arbitration provision was hidden, written only in English, and not adequately explained. Furthermore, the arbitration costs were prohibitively high, effectively denying Sanchez access to a forum to litigate his claims, rendering the arbitration clause unenforceable​. Sanchez v. Superior Court of Orange County, G064490 (4/3 2/3/25) (Delaney, Sanchez, Motoike).
COMMENT: In the past, we have blogged about many cases in which a contract written in English presented some degree of unconscionability for a person who did not speak English. Here, the contract at issue was an attorney-client agreement, and a California statutory provision applies. California Civil Code section 1632(b)(6) requires a person in a trade or business who negotiates a contract in Spanish (and other specified languages) to provide a translation in Spanish of the contract. And this applies to: "A contract or agreement, containing a statement of fees or charges, entered into for the purpose of obtaining legal services, when the person who is engaged in business is currently licensed to practice law pursuant to Chapter 4 (commencing with Section 6000) of Division 3 of the Business and Professions Code."
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