Delaware Choice Of Law Provision Barring Class Wide Arbitration Held Unconscionable
Question: If California residents sue a Delaware bank and its credit card servicing company for alleged unlawful practices, and the underlying cardholder agreements contain a Delaware choice of law provision and a "hidden" clause prohibiting class-wide arbitration, should California nonetheless compel the name plaintiffs to arbitrate on an individual basis?
Answer: No, according to the First District Court of Appeal in Klussman v. Cross Country Bank, 05 C.D.O.S. 10602 (Dec. 15, 2005).
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