Had a client last month who signed a contract without reading the arbitration clause - now he's stuck paying $8,000 in fees he could have avoided

He came to me after a dispute with his contractor over a kitchen remodel in Portland. When I asked for the contract, he pulled out this crumpled copy from his glove box. The arbitration clause was on page 8 in tiny 8-point font, buried under a bunch of warranty stuff. I explained that the clause binds him to pay half the arbitrator's fees even if he wins, and the contractor's lawyer already triggered it. Has anyone else seen these hidden arbitration traps in standard home improvement contracts?

2 comments

2 Comments

ericp6724d ago

I saw a news piece last year where a guy in California got hit with a $12k arbitration fee from a roofing contractor over a leaky roof. The clause was in a separate addendum he didn't even remember signing. It's crazy how common this is now, especially in smaller markets like Portland where contractors know homeowners won't fight it.

grant.jason23d ago

Yeah that California case was wild when it made the rounds. The addendum thing is the scariest part because who actually reads every single line of a contract when you're just trying to get your roof fixed? I've heard horror stories from neighbors where the arbitration clause was buried in the fine print or even just handed to them after the work started. And you're right about smaller markets - there's less competition so contractors can get away with more. Makes you wonder how many people just pay up without even knowing they could fight it.