GRSM Litigation Team Compels Arbitration in National Fair Debt Collection Practices Act and Consumer Fraud Class Action

Representing a regional debt collection firm named as a defendant, GRSM moved the dispute out of court and into individual arbitration, effectively defusing the expansive class action risk and protecting the client from potentially broad liability exposure. This outcome halted the pursuit of class claims and confined the matter to a single-plaintiff arbitration, marking a decisive win for the client in a high-stakes case.

This result was achieved against vigorous opposition and amidst complex legal hurdles regarding arbitration. The plaintiff fought to keep the case in court on multiple grounds, arguing that the firm had waived its right to arbitrate by initiating the underlying debt collection lawsuit and contending that the arbitration agreement was unconscionable and unenforceable. GRSM’s team strategically overcame each of these challenges. The court rejected the plaintiff’s waiver argument, finding that the firm’s initial litigation steps did not forfeit its ability to compel arbitration. GRSM further demonstrated that a valid and enforceable arbitration agreement governed the dispute and that its client, as an agent of the original creditor, was entitled to invoke that agreement. On this showing, the court enforced the contract’s arbitration clause and class action waiver, compelling the plaintiff to pursue any claims on an individual basis in arbitration.

This victory showcases GRSM’s class action defense strategy and adept handling of complex procedural issues. By compelling arbitration and overcoming arguments of waiver and unconscionability, GRSM successfully neutralized a potentially nationwide class action on behalf of its client. The result underscores GRSM’s skill in leveraging arbitration to mitigate class action exposure and position clients for successful outcomes in high-stakes matters.