Alert April 03, 2012

The 11th Circuit Ruled Overdraft Case Should be Decided by an Arbitrator

The Eleventh Circuit vacated the district court’s ruling that plaintiff’s claims were outside the scope of the arbitration agreement.  Plaintiff filed a putative class action seeking monetary and injunctive relief for alleged violations of state common law and the Maryland Consumer Protection Act.  The case was transferred to the U.S. District Court for the Southern District of Florida for consolidation of pretrial issues.  The lower court found that the case was not subject to the arbitration agreement because plaintiff’s injunctive relief claims were outside the agreement’s scope.  Defendant appealed on the grounds that pursuant to the arbitration agreement, whether the claims were covered by the arbitration agreement should be decided by an arbitrator.  The Eleventh Circuit agreed and remanded the case back to the lower court with the instruction to also review its unconscionability decision in light of Concepcion

Click here for the opinion.