Originally published by Gene Roberts.
In Cash Biz, LP v. Henry, the San Antonio Court of Appeals held that a party who filed a criminal complaint against another did not substantially invoke the judicial process, otherwise acting as a waiver of an agreement to arbitrate. In this case, a payday lender entered into a credit service agreement that contained a “waiver of jury trial and arbitration provision” with its borrowers. When the borrowers’ checks were declined for insufficient funds, Cash Biz contacted the local district attorney’s office for the issuance of “bad checks and check fraud.” Criminal charges were filed against the borrowers and those charges were eventually dismissed. Several of the borrowers were arrested and detained prior to the dismissal of the criminal charges.
The borrowers filed a class action suit alleging violations of the Texas Finance Code and the DTPA, amongst others. Cash Biz moved to compel arbitration under the loan contracts, which was denied by the trial court. In part, the trial court concluded …
from Texas Bar Today http://ift.tt/2ak7o5M
via Abogado Aly Website