Hough, et al. v. Regions Financial Corp., et al.

Regions appealed the denial of their renewed motion to compel plaintiffs to arbitrate their complaint against Regions. Plaintiffs sued regions for allegedly violating federal and state law by collecting overdraft charges under its deposit agreement, and Regions moved to compel arbitration based on an arbitration clause in that agreement. The district court denied the motion to compel on the ground that the arbitration clause was substantively unconscionable because it contained a class action waiver, but the court vacated that ruling and remanded for further consideration in light of AT&T Mobility LLC v. Concepcion. On remand, Regions renewed its motion to compel, which the district court denied on the ground that the arbitration clause was substantively unconscionable under Georgia law because a provision granting Regions the unilateral right to recover its expenses for arbitration allocated disproportionately to plaintiffs the risks of error and loss inherent in dispute resolution. Because the reimbursement provision was neither procedurally nor substantively unconscionable under Georgia law, the court reversed the order denying the renewed motion to compel Regions and remanded with instructions to compel arbitration. View "Hough, et al. v. Regions Financial Corp., et al." on Justia Law