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The Texas Supreme Court that an arbitration agreement incorporated by reference on a bank signature card is both valid and enforceable.
In In re Bank One, N.A., No. 06-0093, 2007 WL 549744 (Tex. Feb. 23, 2007), J & S Air, a Bank One customer, brought an action against Bank One, alleging that Bank One improperly honored forged checks. Bank One filed a motion to compel arbitration, arguing that the dispute was subject to arbitration because the signature cards, signed by J & S employees, incorporated an arbitration clause by reference.
Noting that signature cards are valid contracts under Texas law, and that documents incorporated by reference are a part of that contract, the Court held that J & S agreed to the arbitration clause by signing the signature card.
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