Thursday, January 03, 2008

Magistrate Judge Welsh recommends enforcing arbitration clause in title loan contract

In Reel v. Anderson Financial Services, LLC, Magistrate Judge Welsh of the W.D. Va. recommended that the District Court should grant the defendant's motion to compel arbitration, rejecting the plaintiff's argument that the arbitration clause in the contract, a "Motor Vehicle Line of Credit" was unenforceable. Among other things, the judge concluded that the plaintiff could not show that the arbitration clause was unconscionable. The analysis is consistent with, although in some ways dissimilar, from the reasoning in the recent Third Circuit case applying Virginia law in somewhat similar circumstances.

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