Denial of Motion to Compel Arbitration Vacated by Second Circuit Due to Insufficient Record Evidence of Presentment of “Scrollwrap Agreement” to Users

Nicole Zachman brought a putative class action against the Hudson Valley Federal Credit Union (HVCU) for breach of contract and violation of the federal Electronic Fund Transfer Act, among other claims, based on HVCU’s alleged practice of collecting overdraft or insufficient funds fees on accounts that were not actually overdrawn.

HVCU moved to compel arbitration based on an arbitration provision included in the modified account agreement Zachman signed in 2019 when she opened her online account with HVCU. Zachman countered that the account agreement she signed in 2012, when she originally opened her account with HVCU, did not contain an arbitration agreement and further that she was not bound by the arbitration provision added in 2019 because she was never provided notice of its addition…

Read the complete story here.

Featured Arbitrators

ad
View all

Read these next

Category

The Tide Rises: Will Biden’s Blue Wave Wash Away Mandatory Arbitration?

This article first appeared on the Financial Institutions Law Alert, here. Congressional rumblings about outlawing mandatory arbitration clauses are relatively common, but they have not been successful. Ever since a...

By Joseph Calabrese
Category

Eleventh Circuit Clears the Road to Arbitration for Last-Mile Drivers

This article first appeared on LexBlog.com, here. Seyfarth Synopsis: Though it may sound esoteric, the question of whether “last mile” drivers fall within the Federal Arbitration Act’s transportation worker exemption bears...

By Lennon B. Haas, Kyle Petersen, Kevin M. Young
Category

The Future of the Transportation Worker Exemption to Mandatory Arbitration – Clarity for the Gig Economy?

In 1925, the Federal Arbitration Act (“FAA”) was enacted to ensure the validity and enforcement of arbitration agreements due to a national policy favoring arbitration as a dispute resolution mechanism....

By Brittany Munn

Find an Arbitrator