Geoffroy
Geoffroy v. Washington Mutual Bank
Opinion
Opinion
Benitez, J.
ORDER DENYING DEFENDANT’S MOTION TO COMPEL ARBITRATION AND MOTION TO STAY
I. INTRODUCTION
Plaintiffs are retirees who opened a joint consumer checking account at their local branch of Defendant Washington Mutual Bank. They deposited $80,000 in the account and went on a three-month vacation. Upon returning, they discovered the account had been drained dry and overdrawn by $20,000 by someone else. The bank took the position that it was not at fault and demanded repayment of the overdraft. Plaintiffs then brought the instant action alleging a federal claim under the Electronic Fund Transfers Act (“EFTA”), 15 U.S.C. § 1693 , et seq., and state claims of negligence and breach of contract. Washington Mutual now moves to compel arbitration of the claims and to stay the action based upon an arbitration clause in its checking account “Signature Card.” Plaintiffs oppose the motion arguing that the arbitration clause is unconscionable. For the reasons stated below, the Court agrees with the Plaintiffs and denies Washington Mutual’s Motion to Compel and Motion to Stay.