Court Opinion

ID: 9601033
Source: CourtListenerOpinion
Date Created: 2023-08-22 01:35:36.316445+00
Date Added: 2024-06-11T09:48:44.849671
License: Public Domain

*1086TROTT, Circuit Judge,
concurring:
Given the narrow question presented by this appeal, I concur in our per curiam opinion. Nevertheless, I add some observations designed, I hope, to shed light on remand on the underlying question: is the arbitration “agreement” — including a class arbitration waiver — -enforceable, or not.
California law is far from settled. In Citibank (South Dakota), N.A. v. Walker, No. A117770, slip op. at 8, 2008 WL 4175125 (Cal.Ct.App. September 11, 2008), Division Four of the First Appellate District held in an unpublished opinion that the arbitration waiver at issue is not unconscionable or unenforceable under California law. In so holding, that court focused on a cardholder’s choices:
Here, although the change was made in a “bill staffer,” Walker was given an opportunity to opt out of arbitration. By opting out of the amendment, Walker would have been permitted to use his card until it expired, at which time he would have been able to pay off his balance under the existing terms. This does not present the same take it or leave it scenario found to be procedurally unconscionable in Discover Bank [v. Superior Court, 36 Cal.4th 148, 30 Cal. Rptr.3d 76, 113 P.3d 1100 (2005).] Moreover, Discover Bank [v. Superior Court] does not stand for the proposition that “bill staffer” amendments are per se unconscionable.
Rather, it focuses on the take it or leave it nature of the contractual modification.
Walker, No. A117770, slip op. at 10 (citation omitted).
However, Division Seven of the Second Appellate District held in Firchow v. Citibank (South Dakota), N.A., No. B187081, 2007 WL 64763, at *8-9, 2007 Cal.App. Unpub. LEXIS 178, at * 26 (Ct.App. Jan. 10, 2007), that the “agreement” under our legal microscope is unconscionable.
This brings us to Jones v. Citigroup, Inc., 38 Cal.Rptr.3d 461 (Ct.App.2006). In Jones, Division Three of the Fourth Appellate District declined to conclude that a similar attempt to avoid classwide arbitration was unconscionable under California law:
Our case is different [from Discover Bank v. Superior Court], Here, although the change was made in a “bill staffer,” plaintiffs were given an opportunity to opt out of arbitration. By giving written notice of their rejection of the amendment, they could continue to use their cards until the cards expired and then would be able to pay off their balances under the terms of their existing agreement without acceleration. This does not present the take it or leave it scenario described in Discover [Bank v. Superior Court] or Szetela [v. Discover Bank, 97 Cal.App.4th 1094, 118 Cal.Rptr.2d 862 (2002),] as being procedurally unconscionable. Rather, it appears that defendant was cognizant of the oppressive nature of forcing a non-consenting cardholder to either agree to arbitration or immediately cancel the account and took steps to avoid it.
Jones, 38 Cal.Rptr.3d at 465.
The good news, if there is any good news in all of this, is that the California Supreme Court vacated and remanded the Jones decision for further proceedings in light of its decision in Gentry v. Superior Court, 42 Cal.4th 443, 64 Cal.Rptr.3d 773, 165 P.3d 556 (2007). Jones v. Citigroup, Inc., 68 Cal.Rptr.3d 530, 171 P.3d 547 (Cal.2007).
There it is. Mixed signals from the California courts. One hopes on remand in this case that the legal dust will soon settle and that our district court will have *1087some reliable authority upon which to base its decision.