District Court Grants Motion to Compel Arbitration, Finding that Parties had Delegated Questions of Unconscionability to the Arbitrator

In March 2019, Plaintiff Daniel Zeevi opened a bank account with a Las Vegas, Nevada branch of Defendant Citibank, N.A. (“Citibank”). In doing so, Zeevi restricted any potential text notifications related to his transaction history to those transactions of $101.00 or greater. Zeevi claimed that Citibank nevertheless sent him text messages related to transactions less than or equal to $100.00, in violation of the Telephone Consumer Protection Act (“TCPA“).

In response to Zeevi’s lawsuit, Citibank filed a motion to compel arbitration in accordance with an arbitration agreement contained in a client manual that Zeevi signed when he opened the account. Zeevi opposed the motion, contending that the arbitration agreement contained in the client manual was unconscionable, and thus, unenforceable. Citibank asserted that, because the arbitration agreement contained a delegation clause reserving decisions on “claims relating to the enforceability and interpretation of … the arbitration provisions” for the arbitrator, the court should leave the question of unconscionability to the arbitrator.

Zeevi v. Citibank, N.A., No. 2:19-cv-02206-GMN-BNW (D. Nev. Feb. 16, 2021) [click for opinion]

Read the complete story here.

Featured Arbitrators

ad
View all
ad

Read these next

Category

SCOTUS on Henry Schein II Certiorari Grant: “Never Mind!”

This article first appeared on the Securities Arbitration Alert (SAA) Blog, here. The Supreme Court has reversed in a summary dismissal its decision to grant Certiorari in its second look at Henry Schein,...

By George Friedman
Category

Arbitration Conversation Episode 52: Graham Ross, Head Of International Marketing at Smartsettle.com

In this episode of the Arbitration Conversation Amy interviews Graham Ross, Head Of International Marketing at Smartsettle Resolutions Inc. and Founder and President of TheMediationRoom.com. The discussion revolves around Smartsettle...

By Graham Ross, Amy Schmitz
Category

Arbitration Conversation No. 70: Catherine Rogers, Founder, Arbitrator Intelligence

In this episode of the Arbitration Conversation Amy interviews Catherine A. Rogers, a scholar of international arbitration and professional ethics at Penn State Law, with a dual appointment as Professor...

By Catherine Rogers, Amy Schmitz

Find an Arbitrator

X
X
X