Mandel

Defendant Household Bank (Nevada), National Association, appeals from an order denying its petition to compel plaintiff Ellen Mandel to arbitrate her claims for breach of contract, breach of the implied covenant of good faith and fair dealing, and fraudulent and negligent misrepresentation. Defendant contends plaintiff is bound to arbitrate under the terms of an amendment to her credit card agreement. Plaintiff raises numerous arguments to defeat enforceability of the arbitration agreement. We conclude the term barring class arbitration is unconscionable and strike it. Otherwise, the agreement is enforceable and binding on plaintiff. We therefore reverse and remand.

In 1988, plaintiff opened a credit card account with defendant. The contract allowed defendant to modify it upon written notice: "We have the right to change the terms of this agreement from time to time." (Capitalization and bold type omitted.) The contract also included a choice of law clause that designated California and federal law to govern disputes. Eight years later, plaintiffs account was revised to substitute Nevada law for California law. In 1998, defendant again amended the agreement to…