|
A deferred ruling on the enforceability of an arbitration agreement in regards to its bar on class-wide proceedings is now ripe to be considered, a federal bankruptcy court in Pennsylvania held.
In In re Frascella Enterprises, Inc., No. 06-10322DWS, 2007 WL 474043 (Bankr. E.D. Pa. Feb. 08, 2007), Frascella issued "payday loans" to Turner and others, who commenced a class action against Frascella. The class action was moved to bankruptcy court after Frascella filed for bankruptcy protection.
In a prior ruling, the Court deferred ruling on Turner's argument that discovery limitations and the bar on class-wide proceedings rendered the arbitration clause unconscionable. In re Frascella Enterprises, Inc., 349 B.R. 421 (Bankr. E.D. Pa. 2006). In this case, the Court held that Frascella's motion to compel arbitration is now ripe for consideration.
Subscribe to a free weekly update on ADR case law and
legislation
|