Court Rules Plaintiffs’ Pact to Arbitrate Dispute Enforceable
March 26, 2001
A Pennsylvania court threw out a class action lawsuit against CitiFinancial Services, Inc., ruling that the plaintiffs who brought the action are bound by an arbitration provision they signed when obtaining the loan. In a March 6 decision, the Philadelphia Court of Common Pleas dismissed with prejudice complaints filed by Robert and Judith Lytle against CitiFinancial, holding that the arbitration clause in the loan agreement prohibited class arbitration. The Lytles have appealed the decision.