On July 6th, the Eleventh Circuit ordered arbitration in a putative class action complaint alleging that a bank charges its retail customers overdraft fees even if an account contains sufficient funds. After determining that the instant state's unconscionability doctrine does not interfere with fundamental attributes of arbitration, and is therefore not preempted by the Federal Arbitration Act, the Court found that the parties' arbitration agreement contains an unconscionable fee-shifting provision. However, because that provision is severable from the arbitration agreement, arbitration can still be compelled. In re: Checking Account Overdraft Litigation.
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After severing unconscionable provision, court orders arbitration
- Winston & Strawn LLP
- July 9 2012
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Senior Patent Counsel
Royal DSM NV