Thompson v. Lithia ND Acquisition Corp. #1

The Federal Arbitration Act does not preempt all state arbitration law. A party alleging an arbitration agreement is unconscionable must demonstrate some quantum of both procedural and substantive unconscionability. A party's failure to clearly object to a defect in arbitration proceedings prior to or during arbitration may constitute a waiver of the objection. Lynne Thompson appealed a district court order compelling arbitration, a judgment confirming the arbitration award, and an order denying her motion to vacate the judgment or for a new trial. Thompson sued Lithia ND Acquisition Corp. #1, seeking to rescind a contract to purchase a vehicle and for damages for unjust enrichment and unlawful sales practices. Lithia moved to dismiss Thompson's complaint and to compel arbitration, arguing there was an enforceable agreement to arbitrate. Thompson responded to the motion, arguing the arbitration agreement was unenforceable and unconscionable and claiming she was entitled to a jury trial on the issue of the enforceability. The North Dakota Supreme Court affirmed, concluding the district court did not err in compelling arbitration or confirming the arbitrator's award. View "Thompson v. Lithia ND Acquisition Corp. #1" on Justia Law