Lhotka v. Geographic Expeditions, Inc.
Court of Appeal of California
181 Cal. App. 4th 816 (2010)
Jason Lhotka (plaintiff) purchased a Mount Kilimanjaro hiking expedition from Geographic Expeditions, Inc. (GeoEx) (defendant), which required all purchasers to sign a non-negotiable liability-limitation and release agreement mandating mediation and arbitration in San Francisco, capping recovery at the trip's cost, requiring the purchaser to pay GeoEx's attorneys' fees if any claim was brought, and requiring the purchaser to cover half the mediator's costs. A letter accompanying the agreement stated it was mandatory and unmodifiable, and falsely implied all other travel companies required essentially the same terms. Lhotka signed and died during the expedition; his mother sued GeoEx for wrongful death and other claims, and GeoEx moved to compel arbitration, which the trial court denied.
Whether the defense of unconscionability to a contract applies if a party does not have a meaningful choice and the terms of the contract are unreasonably favorable to the other party.