Judge King denied Wells Fargo’s motion to compel arbitration in the putative class action we have pending before him in MDL proceedings in the Southern District of Florida. The account agreements issued by Wells Fargo provided for permissive arbitration. That means if one party files in court, the other party has to immediately demand arbitration. These cases were filed in 2008, but Wells Fargo did not seek arbitration until April 27, 2011.
Further, Judge King had set a deadline in 2009 for Wells Fargo to file non-merit motions like motions to compel arbitration. Wells Fargo ignored this deadline.
The court recognized that the parties have done dozens of depositions across the country and have reviewed thousands of documents. This is a very good result for potential class members.
The court’s opinion can be found here: Wells Fargo Overdraft MDL.