On June 19, 2013, the West Virginia Supreme Court of Appeals ("the Court" or "WVSCA") issued an important decision that bolsters the ability of financial institutions and other defendants to enforce arbitration agreements. Credit Acceptance Corporation v. Front, Docket Nos. 11-1646, 12-0545 (W. Va. June 19, 2013), Slip Op. Spilman consumer finance attorneys were pleased to obtain this victory on the consolidated appeal of two orders denying arbitration. The decision helps to define how a court will determine if an agreement to arbitrate is unconscionable, rendering the agreement unenforceable. This is important to defendants who have included arbitration provisions in their contract and prefer to resolve dispute by arbitration.

The Credit Acceptance decision helps to define whether a West Virginia court can determine if an agreement to arbitrate is unconscionable, rendering the agreement unenforceable. In addition, the WVSCA held that a party that is denied a request to refer a litigated dispute to arbitration does not have to wait until the conclusion of litigation to appeal that decision but may appeal it immediately to the WVSCA. This is important to defendants who have included an arbitration provision in their contract and prefer to resolve disputes by arbitration.

Read the full summary of this decision here.