Opinion ID: 1779301
Heading Depth: 2
Heading Rank: 2

Heading: Was the Arbitration Agreement Valid and Enforceable?

Text: ¶ 11. The issue raised before this Court is whether the arbitration clause in the loan agreement between Hubbard and UCCM is enforceable. Hubbard contends that the trial court did not commit reversible error when it denied the motion to compel arbitration. Hubbard bases this contention on the notion that UCCM waived its right to arbitration by participating in discovery and that the arbitration clause contained in the loan agreement is both procedurally and substantively unconscionable. ¶ 12. Procedural unconscionability may be proved by showing `a lack of knowledge, lack of voluntariness, inconspicuous print, the use of complex or legalistic language, disparity in sophistication or bargaining power of the parties and/or a lack of opportunity to study the contract and inquire about the contract terms.' Taylor, 826 So.2d at 714. In Taylor, the plaintiff argued that the arbitration clause he signed was procedurally unconscionable because he did not know what arbitration was and the employee of East Ford failed to inform the plaintiff that he should read the arbitration agreement before signing it. Id. These facts are identical to the present case, with one important fact that is different, in Taylor the arbitration clause was in a font size that was less than one-third the size of the rest of the font in the document. Id at 716-17. ¶ 13. The present arbitration agreement provided language that was conspicuous because it was in all bold and capital letters. In addition, as previously stated, Hubbard was responsible for reading and understanding any document that she may sign. Russell, 826 So.2d at 726 (citing Runnels, 252 Miss. at 96, 172 So.2d at 571). Thus, the arbitration clause was not procedurally unconscionable and is enforceable against Hubbard. ¶ 14. Substantive unconscionability may be proven by showing the terms of the arbitration agreement to be oppressive. Taylor, 826 So.2d at 714. This issue can be decided by looking at the plain language of the agreement. The arbitration agreement equally binds both UCCM and Hubbard. There is no disparity in bargaining power or either party's ability to arbitrate any issue stemming from the loans made to Hubbard. Therefore, the arbitration agreement was not substantively unconscionable because both parties were guaranteed the same rights by the agreement.