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Lhotka v. Geographic Expeditions, Inc. | 181 Cal. App. 4th 816 (2010)
Generally, parties are bound by the terms of the contracts they sign. But common law has always upheld the notion that unequal bargaining power shouldn’t be a means for one party to take advantage of another. In Lhotka versus Geographic Expeditions, Incorporated, the court examined whether the one-sided terms of a contract for a Mount Kilimanjaro expedition were enforceable.
Geographic Expeditions, also known as GeoEx, is an adventure travel company. Jason Lhotka and his mother, Sandra Menefee purchased an expedition for a guided climb up Mount Kilimanjaro from GeoEx.
Lhotka and Menefee signed GeoEx’s form for limitation of liability and release, which was required to participate in the expedition. The agreement released GeoEx from all liability in connection with the expedition. It also required any potential disputes to be mediated and arbitrated in San Francisco. Recovery was limited to the expedition’s purchase price and purchasers would pay half of any mediation costs. Purchasers would be responsible for GeoEx’s legal fees if they filed any legal claims against GeoEx.
In a letter included with the agreement, GeoEx stated that returning a signed, unmodified agreement was mandatory and that the terms were nonnegotiable. The letter also claimed that other travel companies’ forms included similar terms.
While Sandra and Jason were on the Mount Kilimanjaro expedition, Jason died from an altitude-related illness.
Sandra and Jason’s wife, Elena Lhotka, sued GeoEx for wrongful death. The trial court denied GeoEx’s motion to compel arbitration and GeoEx appealed to the California Court of Appeal.
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