Flores

Plaintiffs Donald J. and Helen Flores, husband and wife, are senior citizens who obtained a reverse mortgage on their home from defendant Transamerica Home-First, Inc., (HomeFirst). After plaintiffs filed suit against HomeFirst for unfair business practices and other tortious conduct, HomeFirst petitioned to compel arbitration pursuant to arbitration clauses contained in the loan agreement and deed of trust signed by plaintiffs. The trial court denied the petition, finding the arbitration clauses to be unconscionable and unenforceable. HomeFirst appeals from that ruling, which we now affirm. [1]

In February 1997, plaintiffs, then ages 80 and 76, executed a "Loan Agreement and Note" and a deed of trust in order to obtain a reverse mortgage on their home from HomeFirst. [2] Under the reverse mortgage plan, plaintiffs received a lump sum plus monthly payments from Home-First until July 1999, when plaintiffs sold their home. In connection with the sale, plaintiffs received a final loan payoff demand from HomeFirst and were shocked to discover that they owed not only the $72,018 in principal they had borrowed plus interest on that principal but also another $75,000 in…