California Supreme Court

Pinnacle Museum Tower Association, Plaintiff and Respondent v. Pinnacle Market Development (US) — Werdegar, J…

August 16, 201255 Cal. 4th 223

Summary

Justice Werdegar, concurring, agreed that the developer's recorded arbitration provision is enforceable against the homeowners association, but concluded that enforcement rests on the Davis-Stirling Act's treatment of recorded declarations rather than on contract formation. She would evaluate the provision under the statute's requirement that covenants be reasonable, and concluded the association had not shown the clause to be unreasonable or substantively unconscionable. Justice Kennard, dissenting, would have affirmed the Court of Appeal because the association never consented to arbitration; Justice Liu, concurring, agreed that statutory notice supplied sufficient consent and that substantive unconscionability was the appropriate validity inquiry.