Judy Myers and the Terminix International Company entered a contract in which Terminix agreed to inspect Myers's home and eliminate any termite problem found there. The service cost Myers an initial payment of $1,300 plus annual renewal fees of $85. Terminix failed to eradicate the termite infestation, causing more than $41,000 in damage to Myers's home.
The contract contained a clause that required the parties to submit any disputes to arbitration under the American Arbitration Association (AAA). What the contract did not disclose was that Myers would be required to pay a filing fee to submit a claim to AAA. In this case, the filing fee amounted to $7,000.
In a lawsuit filed for breach of contract, Myers asserted that the undisclosed filing fee requirement was unconscionable. Is Myers correct? Explain.
Myers v. Terminix, 697 N.E.2d 277 (OH)