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Rodriguez v. Ed's Mobile Homes of Bossier City12/8/2004
s, Dennis is not applicable.
THE ARBITRATION AGREEMENT/CONSENT
We recognize that Louisiana public policy strongly favors the resolution of disputes through the arbitration process. However, this does not mean that all arbitration provisions are valid under state law. The state arbitration statute provides that " provision in any written contract to settle by arbitration a controversy thereafter arising out of the contract.shall be valid, irrevocable, and enforceable, save upon such grounds as exist in law or in equity for the revocation of any contract."
One of the conditions of a valid contract is the consent of both parties. Consent may be vitiated by error. Error can "invalidate a contract if it is related to the principle cause, or motive, for making the agreement" and is "known or should have been known to the other party." Cause is the "reason why a party obligates himself."
In the case at bar, the Rodriguezes testified that when they signed the original agreement and made their down payment of $7000.00, there was no discussion of the requirement of an arbitration or mediation agreement. The latter was presented to them, for the first time, at closing; they signed it because they thought they "had to" in order to get delivery of their mobile home. Misty said that she was told the documents she signed were "just legal stuff we had to sign. to buy the trailer." (Emphasis added.) Jason confirmed that "if we wanted a place to live" he had to sign the papers. (Emphasis added.)
However, their understanding was error under the law. The parties had already agreed upon the terms of contract of sale before closing, and binding arbitration was not one of them. According to the original purchase agreement's terms, title of the mobile home passed to the Rodriguezes once they paid for the mobile home, either through cash or financing. Contrary to what they were told, they did not need to sign the arbitration agreement to take delivery of their home.
Further, River Chase knew or should have known that the arbitration agreement could not be part of the consideration of the original contract. A party cannot, unilaterally, assign additional consideration for the perfection of a sale.
Thus, the elements required for invalidation of the contract by error are present, and we rescind the arbitration agreement because it is not valid for lack of consent.
CONCLUSION
Because we find that error vitiated the Rodriguezes' consent regarding the arbitration agreement, we affirm the trial court's ruling and cast costs of this appeal are on River Chase.
AFFIRMED.
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