Fifth Circuit Holds Prior Waiver of Right to Arbitrate State Law Claims Does Not Waive Right to Compel Arbitration…

In protracted litigation springing from the sale of “free” credit reports that “were not really free,” the Fifth Circuit Court of Appeals held that a party’s waiver of its right to arbitrate state law claims did not result in a waiver of its right to compel arbitration of newly asserted federal law claims. In a purported class action, the plaintiff originally asserted several claims under Illinois law against One Technologies, L.P. One Tech removed to federal court and filed a motion to dismiss. After that motion was partially denied, One Tech moved to compel arbitration, which was granted by the district court but reversed on appeal, with the Fifth Circuit holding that filing of the motion to dismiss waived the right to arbitrate the state law claims…

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