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Class Action Blog

As society becomes increasingly litigious, and as plaintiff attorneys market their services more aggressively, class action litigation is posing a rapidly growing threat to businesses in all sectors.

Class Action Blog
November 11, 2018

Minor’s TCPA Claim Creates Major Arbitration/Class Action Mess

Summary: A.D., a minor, filed a class action TCPA suit prosecuted by her mother against Credit One which had called A.D.’s cell phone to collect the mother’s debt. The mother had used A.D.’s cell phone to access the mother’s Credit One account, which Credit One’s caller I.D. “capture software” used to try to collect the mother’s debt. Based upon the terms of the Credit One cardholder agreement between the mother and Credit One, the district court compelled arbitration, denied A.D.’s motion for class certification, and certified for interlocutory appeal “the question whether A.D. is bound by the cardholder agreement.” The 7th Circuit ruled that A.D. was not bound by the cardholder agreement either under contract law or equitable principles and further ruled that on remand the district court was not bound to follow the cardholder agreement’s class action waiver any more than the arbitration clause. For that reason, the district court was permitted to reconsider its denial of the minor’s motion for class certification.