“11th Circuit: Class members must arbitrate overdraft suits”

Lexology has published this article from Buckley, discussing the Eleventh Circuit’s decision in Larsen v. Garcia, in which the court affirmed a decision finding arbitrable putative class actions challenging a national bank’s overdraft practices. The opinion is interesting in that the court was tasked with interpreting two versions of a client agreement. One version provided for arbitration under the rules of the American Arbitration Association. The second version contained no such provision, simply providing for arbitration.

As to the first version, the court held that challenges based on unconscionability were to be determined by the arbitrators, since the AAA rules provided for the arbitrators to address questions regarding enforceability of the arbitration provision.

As to the second version of the client agreement, the lower court determined the arbitration provision to be enforceable, and the Eleventh Circuit affirmed.

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