Fisher v. MoneyGram International, Inc.

STREETER, Acting P. J.

NOT TO BE PUBLISHED

Alameda County Super. Ct. No. RG19009280

STREETER, Acting P. J.

In this case we assess the validity of an arbitration provision in a consumer adhesion contract that reduces the length of the statute of limitations, invokes the application of the arbitrators' higher commercial fees, and requires consumers to bear their own costs and fees for experts and attorneys. We conclude the arbitration provision is unconscionable largely because it was hidden on the back side of a money transfer order form, in tiny 6-point print that we deem virtually illegible. Because the arbitration provision operated largely to benefit defendant MoneyGram International, Inc. (MoneyGram) at plaintiff Jonathan Fisher's expense, we affirm the superior court's order denying MoneyGram's petition to compel arbitration.

I. BACKGROUND

A. The MoneyGram Transactions and the Arbitration Provision

MoneyGram is a global financial company that enables customers to transfer money to various locations in the United States and around the world. Consumers can make MoneyGram transactions online, through a mobile platform or kiosk, or at an agent location in retail stores such as Walmart.

On February 17 and 18, 2016, Jonathan Fisher, a 63-year-old Vietnam War-era Veteran with poor eyesight, initiated money transfers at two different Walmart stores in California, the first for $2, 000 to a recipient in Rockmart, Georgia, and the second for $1, 530 to a recipient in Baton Rouge, Louisiana. In order to proceed with the transactions, Fisher was required to complete a MoneyGram Money Transfer Form (Send Form), which requests information regarding the sender, amount to be sent, receiver, destination and receiving options. MoneyGram processed Fisher's money transfer requests, and the funds were delivered to the intended recipients. On neither of these occasions did Fisher turn over the Send Form and try to read the Terms and Conditions on the reverse, which included an arbitration requirement (Arbitration Provision). But even if he had tried to read the tiny print, he would not have been able to do so-even wearing his trifocal glasses-at least not without a magnifying glass.