McCarthy

Opinion by Judge BRUNETTI; Dissent by Judge PREGERSON.

The plaintiffs in this case are a group of senior citizen homeowners who entered into “reverse mortgage” loan agreements with the defendants. Alleging that the defendants misrepresented several key terms of the agreements, the plaintiffs filed a class-action lawsuit asserting Truth in Lending Act and various state-law claims. The district court, finding that the loan agreements contained valid arbitration provisions, ordered the individual plaintiffs to separately submit their claims to arbitration, and dismissed the plaintiffs’ complaint. We hold that Congress has eliminated our jurisdiction to review this case under the Federal Arbitration Act. See 9 U.S.C. § 16 (b). Thus, we dismiss this appeal without prejudice to a later timely, appeal.

BACKGROUND

Defendants/Appellees, collectively referred to as “Providential,” sell reverse mortgage loans to qualifying senior citizen homeowners. These loans are made in monthly installments, and are meant to supplement the senior citizen’s income. Repayment of the principal and interest is deferred for as long as the borrower remains in his or her home. In exchange, the homeowner…

dissenting.

I dissent because the majority opinion wrongly deprives the senior citizens of their right to an appeal. The majority erroneously treats a final dismissal as an interlocutory stay and concludes that this court lacks jurisdiction. In my view, the district court’s order compelling arbitration and dismissing the action was a final, appealable decision. This court therefore has jurisdiction to consider the appeal under 9 U.S.C. § 16 (a)(3).

From the outset of this appeal, the parties treated the district cpurt’s decision as an appealable final order. During oral argument in December 1995, we also treated the district court’s decision as an appealable final order. Today the majority concludes that we lack jurisdiction over what originally was and still remains a final dismissal of all claims before the district court.

I. BACKGROUND

Plaintiffs in this case include Mary McCarthy, age 88, Perry and Eunice Williams, ages 90 and 84, respectively, John de Ridder, as executor of the Estate of his mother who died at age 93, and Eda Kavin, age 79. These senior citizens took out “reverse mortgages” with Providential. Their complaint alleges that Providential engaged in practices…