Non-Arbitrability Based Upon Unsigned Agreement Proves To Be A Two-Edged Sword

In Smart v. West Creek Financial, Inc., a Georgia federal court denied a finance company’s motion to compel arbitration, accepting the plaintiff’s disavowal that he ever signed the rent-to-own agreement containing the arbitration provision that the finance company sought to enforce. Victory was ephemeral, however, as the court proceeded to dismiss multiple statutory claims brought by plaintiff predicated on alleged unlawful conduct by the defendant associated with the unsigned rent-to-own agreement. Only one count–for unjust enrichment, based upon the defendant’s alleged removal of $110.45 from the plaintiff’s account–survived.

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