News & Analysis as of

Motion to Compel Financial Services Industry Arbitration

Troutman Pepper

Arbitration Clause Rendered Illusory and Unenforceable by Unilateral Amendment Clause, Says Virginia Federal District Court

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In a recent decision, the U.S. District Court for the Eastern District of Virginia denied a retailer’s motion to compel individual arbitration of a claim brought in a putative class action lawsuit. The complaint alleges that...more

Ballard Spahr LLP

Ninth Circuit: Arbitration clause prevails in “true lender” challenge against OppFi

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In a recent unpublished memorandum opinion in a putative class action, Carpenter et al. v. Opportunity Financial, LLC, the U.S. Court of Appeals for the Ninth Circuit upheld an arbitration clause in an agreement governing...more

Carlton Fields

Third Circuit Reverses Order Denying Motion to Compel Arbitration, Holds Arbitration Clause in Consumer Financing Agreement Is...

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In Mancuso v. MDG USA Inc., the Third Circuit Court of Appeals considered defendant MDG’s appeal of an order denying its motion to compel arbitration of the plaintiff’s lawsuit alleging violations of state and federal fair...more

Troutman Pepper

Ninth Circuit Reverses District Court, Sending Opportunity Financial Lawsuit to Arbitration

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The U.S. Court of Appeals for the Ninth Circuit recently reversed a district court’s ruling, which had denied a motion to compel arbitration of Opportunity Financial (OppFi) on the basis that the arbitration clause was...more

Carlton Fields

Third Circuit Affirms Order Denying Motion to Compel Arbitration After AAA Declines to Administer Arbitration

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The Third Circuit Court of Appeals has affirmed a district court decision denying defendant MicroBilt Corp.’s motion to compel arbitration, finding the plaintiff had fully complied with all provisions of her arbitration...more

Ballard Spahr LLP

California ends automatic stays of litigation when orders denying motions to compel arbitration are appealed

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Currently, California trial court proceedings are automatically stayed when a party appeals an order denying a motion to compel arbitration.  However, on October 10, 2023, Governor Newsom signed California Senate Bill No. 365...more

Carlton Fields

First Circuit Holds That Motion to Reconsider Appealable Interlocutory Order Denying Motion to Compel Arbitration Is Not...

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In Powers v. Receivables Performance Management, LLC, the First Circuit Court of Appeals considered the defendant’s interlocutory appeal of the denial of a motion to reconsider an underlying denial of its motion to compel...more

Orrick, Herrington & Sutcliffe LLP

District Court stays stablecoin suit pending arbitration proceedings

On January 6, the U.S. District Court for the Northern District of California granted a defendant cryptocurrency exchange’s motion to compel arbitration in a class action alleging the exchange, along with the issuer of a...more

Womble Bond Dickinson

Eastern District of North Carolina Declines to Find FCRA Claim is Time-Barred

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The United States District Court for the Eastern District of North Carolina recently provided a good reminder of the applicable standards for both a Rule 12(b)(6) motions based on a statute of limitations defense and motion...more

Pierce Atwood LLP

District Of Massachusetts Holds That Consumers With No Arbitration Agreement Must Arbitrate Their “Closely Intertwined” Class...

Pierce Atwood LLP on

It is a legal maxim that arbitration is a creature of contract. A recent District of Massachusetts decision explores critical questions about when that creature can exist outside of the confines of a binding agreement to...more

Ballard Spahr LLP

Small business borrowers bring lawsuit alleging lender engaged in “rent-a-charter” scheme to make usurious loans

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A group of small businesses and their individual owners have filed a putative class action lawsuit in a New York federal district court against online lender Kabbage, Inc. that alleges Kabbage engaged in a “rent-a-charter”...more

Carlton Fields

Court Compels Arbitration Based on Text Message Agreement

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A district court has granted a motion to compel arbitration based on an arbitration clause in an agreement sent via text message and agreed to via a reply text. ...more

Carlton Fields

Tenth Circuit Affirms Partial Enforcement of Arbitration Clause

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The Tenth Circuit recently affirmed a district court’s decision partially compelling arbitration. Jesse Romero took out three title loans with TitleMax of New Mexico, Inc. Romero used his third loan to pay off his second loan...more

Proskauer - New Media & Technology

Notice of Terms via Buried Link within a Post-Sale Email Unenforceable

In Starke v. SquareTrade, Inc., No. 17-2474, 2019 WL 149628 (2d Cir. Jan. 10, 2019), the Second Circuit affirmed a ruling that denied a web service’s motion to compel arbitration, finding that the user did not have reasonable...more

Carlton Fields

Fifth Circuit Finds Waiver Of Arbitration Where Motion To Dismiss Argued Merits, Omitted Mention Of Arbitration, And Created...

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A consumer (Forby) filed a proposed class action in Illinois state court alleging that One Technologies, L.P. (One Tech) failed to adequately disclose that consumers who accessed their “free” online credit score on the...more

Polsinelli

State High Court Decision Highlights National Split of Authority and Offers Lessons for Those Who Rely on Arbitration

Polsinelli on

The Missouri Supreme Court recently upheld a refusal to compel parties to arbitrate their dispute before a different forum when the one listed in their agreement could not accept the case. ...more

Carlton Fields

Seventh Circuit Affirms Ruling Denying Motion to Compel Arbitration, Holding That Company Waived Right to Arbitrate

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GC Services Limited Partnership (“GC Services”), a debt collector hired by a bank to collect an allegedly unpaid balance on a credit card, advised plaintiff Francina Smith (“Smith”) that it would commence a collection...more

Carlton Fields

Ninth Circuit Finds Foreign Bank Did Not Waive Personal Jurisdiction By Litigating Other Defenses And Counterclaims In A Related...

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The Ninth Circuit recently reversed a California District Court’s finding of personal jurisdiction against a foreign bank, and found it did not waive appeal on that issue by asserting defenses....more

Ballard Spahr LLP

Online Arbitration Agreement Must Be “Reasonably Communicated and Accepted”

Ballard Spahr LLP on

Ruling in a class action brought against Uber Technologies, Inc., the U.S. Court of Appeals for the First Circuit recently held that the company's arbitration clause could not be enforced because it was not "reasonably...more

Carlton Fields

Fifth Circuit Allows Non-Signatories To Enforce Arbitration Agreement

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The Fifth Circuit has affirmed an order compelling arbitration, despite the fact that the parties seeking to compel arbitration were not signatories to the relevant arbitration agreement....more

Ballard Spahr LLP

Reasonable Notice to Consumer Required for Enforcement of Arbitration Clause

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Addressing an important contract-formation issue that has divided federal courts, the U.S. District Court for the Western District of Pennsylvania recently denied a company's motion to compel arbitration because the consumer...more

Ballard Spahr LLP

Second Circuit, on Truncated Record, Holds Dispute Implicating Core Bankruptcy Proceeding Non-Arbitrable

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In a recent decision pitting the Bankruptcy Code against the Federal Arbitration Act (FAA), the U.S. Court of Appeals for the Second Circuit held that a creditor could not compel arbitration of a debtor's class action claims...more

Carlton Fields

Court Compels Discovery, Awards Sanctions In Dispute Over Whether Reinsurance Arbitration Clause Applies

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In 2011, Top’s Personnel entered into a reinsurance agreement with Applied Underwriters Captive Risk Assurance Company (“AUCRA”), and several years later executed a promissory note (“the Note”) in favor of a related entity,...more

Orrick, Herrington & Sutcliffe LLP

Orrick's Financial Industry Week In Review

Financial Industry Developments - Class Action Against Lending Club and WebBank Headed to Defeat - On Monday, January 31, 2017, a federal district court in the Southern District of New York granted a motion to...more

Orrick, Herrington & Sutcliffe LLP

Orrick's Financial Industry Week In Review

Financial Industry Developments - Class Action Against Lending Club and WebBank Headed to Defeat - On Monday, January 31, 2017, a federal district court in the Southern District of New York granted a motion to...more

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