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

Read these next

Category

Arbitration Tips-N-Tools (TNT): Round 19

In this round of Arbitration Tips-N-Tools, Professor Amy Schmitz asks some of the leading arbitration practitioners about the biggest pitfalls of consumer arbitration in its current state, especially in a...

By Steven Shapiro, Imre Szalai, Erin Archerd, Amy Schmitz
Category

Amicus Briefs Are Coming in on Servotronics. And Oral Argument Is Set

This article first appeared in the weekly Securities Arbitration Alert of 22 July 2021 and is reposted here with permission. Amicus Briefs have begun to be filed in Servotronics, where...

By George Friedman
Category

Remember the FINRA Case Where the Broker Challenged a Zoom Hearing Ordered Over His Objection? It’s Been Awarded

This article first appeared on Securities Arbitration Alert (SAA), here. The arbitration underlying a suit challenging a FINRA Panel’s authority to hold a virtual hearing over a broker’s objection has been...

By George Friedman

Find an Arbitrator

X
X
X