Press "Enter" to skip to content

Posts published in “Arbitration & ADR”

Fla. App. Court (3rd DCA) Holds Monthly Text Messages with Link to Terms of Service Sufficient to Compel Arbitration

The District Court of Appeal for the Third District of Florida recently reversed a trial court’s order denying a defendant’s motion to compel arbitration, holding that monthly text messages with a hyperlink to the defendant’s terms of service provided the consumer with sufficient notice that disputes regarding his relationship with the defendant were subject to arbitration. A copy of the opinion in MetroPCS Communications, et al. v. Jorge Porter is available at:  Link to Opinion. A consumer filed a putative class action lawsuit against his cellular telephone provider alleging that it improperly charged the consumer and other customers sales tax on the…

7th Cir. Vacates $10 Million FLSA Award Against Mortgage Company

The U.S. Court of Appeals for the Seventh Circuit recently joined the Fourth, Sixth, Eighth, Ninth, and Eleventh Circuits, in ruling that class or collective arbitrability is a gateway question that is presumptively for the court to decide, rather than the arbitrator. In so ruling, the Court vacated the trial court’s order enforcing a $10 million federal “wage and hour” Fair Labor Standards Act arbitration award against the defendant. A copy of the opinion in Herrington v. Waterstone Mortgage Corporation is available at:   Link to Opinion. The plaintiff filed a putative class and collective action against her former employer.  She alleged…

7th Cir. Holds Debt Collector Waived Arbitration by ‘Gratuitous Delay’

The U.S. Court of Appeals for the Seventh Circuit held that a defendant waived its right to arbitrate due to its “gratuitous delay” in seeking arbitration, where it waited 13 months after the filing of the lawsuit before moving to compel arbitration, and that any showing of prejudice to the non-moving party was not required. Accordingly, the Seventh Circuit affirmed the trial court’s ruling denying a motion to compel arbitration. A copy of the opinion in Smith v. GC Services Limited Partnership is available at:   Link to Opinion. The plaintiff applied for and received a credit card from a bank.  The credit…

Missouri Supreme Court Denies Arbitration Where Chosen Arbitrator No Longer Available

The Supreme Court of Missouri recently affirmed the denial of a lender’s motion to compel arbitration of a consumer’s putative class claims because the arbitration provision at issue designated the use of a specific arbitrator which was no longer available to handle creditor claims. A copy of the opinion in A-1 Premium Acceptance, Inc. v. Hunter is available at: Link to Opinion. Following the borrower’s default under a small personal loan, the lender brought an action in Missouri state court for collection of the debt. The borrower filed counterclaims against the lender for alleged violations of the Missouri consumer protection statute and requested…

7th Cir. Holds Non-Cardholder Must ‘Directly Benefit’ to Be Bound by Cardholder Agreement

The U.S. Court of Appeals for the Seventh Circuit recently held that the minor child of a credit card account holder was not bound by the arbitration clause in the cardholder agreement because she did not become an authorized user of the account by using the credit card. The Seventh Circuit also held that the doctrine of estoppel did not bind the minor to the arbitration clause because the minor did not “directly benefit” from her parent’s use of the credit card. A copy of the opinion in AD v. Credit One Bank, NA is available at:  Link to Opinion. In…

11th Cir. Refuses to Compel Arbitration via ‘Court-Evicting’ Amendment

The U.S. Court of Appeals for the Eleventh Circuit recently held that a bank could not enforce an arbitration clause inserted into an amended customer account agreement during the pending litigation incident to the sale and acquisition of the bank, because the plaintiff was actively opposing arbitration and the bank failed to notify the plaintiff’s counsel and the court of the purportedly “court-evicting” amendment. In so ruling, the Eleventh Circuit concluded that the bank “failed to demonstrate the requisite meeting of the minds to support a finding that the parties agreed through the February 2013 amendment to arbitrate their then-pending…

10th Cir. Affirms Refusal to Compel Arbitration as to Non-Signatory Third Parties

The U.S. Court of Appeals for the Tenth Circuit recently affirmed a trial court’s denial of a motion to compel arbitration against non-signatory third-party beneficiaries who did not accept the benefits of the contract. A copy of the opinion in Jacks v. CMH Homes is available at:  Link to Opinion. In 2009, a buyer financed a mobile home purchase with a manufactured-home retail installment contract.  The contract contained an arbitration provision that purportedly extended to “all co-signors and guarantors … and any occupants of the manufactured home.” Five years later, the buyer and her family sued the home’s manufacturer and…

SCOTUS Holds Kentucky’s ‘Clear Statement Rule’ Violates Federal Arbitration Act

The Supreme Court of the United States recently concluded that Kentucky’s “clear-statement” rule violates the Federal Arbitration Act (FAA) by singling out arbitration agreements and treating them differently from other contracts. The Kentucky Supreme Court had held that the arbitration agreements at issue were invalid because the individuals who entered into the agreements did so under a power of attorney, and the powers of attorney at issue did not specifically entitle the representatives to enter into an arbitration agreement. The Kentucky Supreme Court reasoned that, because the Kentucky Constitution declares the rights of access to the courts and trial by jury…