Appeals Court Affirms Denial of Motion to Compel Arbitration in Tenant/Landlord Mold Case

SAN JOSE, Calif. - An appeals court affirmed denial of a defense motion to compel arbitration in a tenant/landlord dispute concerning mold-related damages and personal injury. Dino Jaramillo, et al. v. JH Real Estate Partners, Inc., et al., No. HO24665 (Calif. App. Ct., 6th App. Dist.).

California's Sixth Appellate District Court of Appeal on Aug. 15 affirmed the ruling of the Monterey County Superior Court denying the landlord's motion to compel arbitration. The appeals court found that the arbitration clause lacked sufficient "bilaterality" and was unconscionable.

Background

The plaintiffs in the case are Dino and Kim Jaramillo, who rented an …