Tuesday, February 11, 2014

This Is How Banks Think.


In a sweeping affirmance of Judge King, the 11th Circuit addresses yet another arbitration clause in the checking overdraft context.

The twist, however, is that in this situation the arbitration provision was in a prior agreement that was entirely superseded by a subsequent agreement that did not contain any arbitration clause at all.

So how can the bank insist the old clause still applies?

Read on:
At this point, RBC reaches its last line of defense. RBC claims that even when parties supersede — rather than waive — a prior agreement containing an arbitration clause by forming a new agreement that is silent on arbitration, the prior agreement’s arbitration clause remains binding. In these situations, RBC contends that the arbitration clause can only be superseded if it is specifically eliminated by the superseding agreement. In other words, RBC claims that silence in a subsequent agreement is per se insufficient to eliminate an earlier agreement’s arbitration provision. This leads to the implausible conclusion that when parties indicate a clear intent to supersede a prior agreement, that superseding language applies to every term in the prior agreement except for arbitration provisions.
Does this even pass the blush test?

7 comments:

Godwhacker said...

Hey, maybe having a mandatory contract that strips you of your rights is a bad idea? But what do I know, I'm just a wacky Godwhacker?

Anonymous said...

If this were a criminal case, the 11th would have upbraided the lawyers for making such a "frivolous" "specious" argument.

ertyertyerty said...

MASIVE DENOUNCE PROYECT.

WE NEED TO KNOW.

SOME BODY SAYS SOME THING THEN ARE GUILTY.



RRRRRRRRRRRRRRRRRQQpgiorg.blog.comQQQRRRRRRRRRRRRRRRRRR

ERTYERTYERT said...

PATENT DENOUNCE.

REGISTER CORRUPTION.

ASIAN COMISION PATENT.
UNITED STATES PATENT AND TRADEMARK OFFICE.
EUROPEAN COMISION PATENT.

QQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQQQ

Anonymous said...

Pathetic. Good ruling too.

Anonymous said...

If the plaintiffs made this argument the 11th would have sanctioned them in a heartbeat.

Anonymous said...

Godwhacker, have you ever considered changing your name to godwhacker with a small g?