Lucy R. Chapman v. H & R Block Mortgage Corporation, et al.

This appeal presents the issue of the enforceability of an arbitration agreement. The plaintiff entered into a loan transaction with the defendant mortgage corporation to obtain funds on behalf of her daughter. The loan was secured by a mortgage on plaintiff's home. Plaintiff's daughter subsequently discontinued making payments on the loan, and plaintiff filed a petition to rescind the loan, asserting that plaintiff was caused to sign the loan by defendant lender's fraud. Several months after the case had been pending, lender demanded that the case be submitted to arbitration pursuant to an agreement signed by plaintiff when the loan was closed. The trial court granted lender's motion compelling arbitration. Plaintiff appeals, arguing that the arbitration agreement she entered into is unenforceable because it is an adhesion contract and is unconscionable and unreasonable. Plaintiff further argues that lender waived its right to compel arbitration under the circumstances in this case. We hold that the arbitration agreement is enforceable, and we affirm the judgment of the trial court.