Thursday, March 6, 2014

Manufactured Home Arbitration Clause Held Unconscionable and Unenforceable

The Tennessee Court of Appeals in Richard A. Berent v. CMH Homes, Inc., et al., ruled that an arbitration clause which forces all of plaintiff home buyer's claims to arbitration but allows finance company access to courts is unconscionable and unenforceable.  Applying the Tennessee Supreme Court's holding in Taylor v. Butler, 142 S.W.3d 277 (Tenn. 1996), the Court of Appeals held against CMH Homes, Inc. and Vanderbilt Mortgage ruling that the arbitration clause must fail.  The opinion seems to invite review by the TSC as to whether its holding in Taylor remains viable.  Read the full opinion here.

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