Companies whose agreements with consumers contain an arbitration clause that delegates certain decisions to an arbitrator to resolve should be mindful of a recent Fourth Circuit decision clarifying what disputes may be resolved by a court and what disputes may be resolved by an arbitrator.
In Modern Perfection, LLC v. Bank of America, N.A., — F. 4th –, 2025 WL 77181 (4th Cir. 2025), plaintiffs entered into two contracts with a financial institution: a deposit agreement that contained an arbitration provision, and a promissory note related to a loan program that did not. Plaintiffs filed a lawsuit against the financial institution, and the institution sought to enforce its arbitration provision. Continue Reading A Closer Look: Fourth Circuit Upholds Unambiguous Delegation Clause post- Coinbase