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MKJA, Inc. v. 123 Fit Franchising, LLC, D055967

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By FindLaw Staff on January 05, 2011 12:58 PM

Challenge to trial court's grant of lift of stay of litigation in breach of contract action

MKJA, Inc. v. 123 Fit Franchising, LLC, D055967, concerned plaintiffs' suit claiming that defendants fraudulently induced them to enter into certain health club franchise agreements, and failed to provide them with operational support that the defendants were to provide pursuant to the terms of the agreements.

In reversing the trial court's grant of plaintiffs' motion to lift stay of litigation and for a declaration that the arbitration provisions are unconscionable, the court held that a party's inability to afford to pay the costs of arbitration is not a ground on which a trial court may lift a stay of litigation that was imposed pursuant to Code of Civil Procedure section 1281.4.

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