Laura A. Cordova, Plaintiff-Respondent v. World Finance Corporation of New Mexico, Defendant-Petitioner

Summary

The court held that World Finance's arbitration provisions were substantively unconscionable because they required borrowers to arbitrate all disputes while allowing World Finance to pursue its likely remedies in court. Applying generally applicable New Mexico contract principles, the court concluded that the Federal Arbitration Act did not preempt that analysis. The court affirmed the denial of the motion to compel arbitration and required the arbitration provisions to be severed from the loan agreements.