2011-02-25 00:01:22 -

DRI – The Voice of the Defense Bar today filed an amicus curiae brief in the United States Supreme Court asking the Court to grant certiorari in CompuCredit Corporation and Synovus Bank v. Wanda Greenwood et al. At issue is whether claims brought under the Credit Repair Organization Act (CROA) can be settled by arbitration.

DRI’s brief asks the Supreme Court to take up the case in order to resolve current conflicts between appellate rulings and tension between the Ninth Circuit’s approach to the question and the well-established federal policy favoring arbitration. In Greenwood v. CompuCredit, the Ninth Circuit ruled that claims brought under the CROA are not subject to arbitration, despite the parties’ prior agreement that all disagreements would be

settled in that venue. The Third and Eleventh Circuits, however, have notably ruled that CROA claims are subject to arbitration. More broadly, the Ninth Circuit’s decision adopts an approach to arbitration of statutory claims that conflicts with how the Supreme Court has approached that same question in other contexts.

“The current ambiguity is extremely problematic, especially because the majority of CROA claims, including the case at hand, are brought as nationwide class actions,” said R. Matthew Cairns, President of DRI. “It invites forum-shopping by attorneys who can simply file their class action cases in the Ninth Circuit where alternative options to litigation are unavailable.”

In Greenwood v. CompuCredit, the plaintiffs’ class alleged that fees for their Aspire Visa cards violated the CROA and that defendants failed to disclose certain information about the cards, as required by the law. In their individual credit card contracts, all of these plaintiffs affirmed that any disagreements would be settled by arbitration.

As the case could set broader precedent governing arbitration in statutory claims, DRI also recommends that the Court consider the extent to which the Ninth Circuit’s decision could have impact beyond CROA and the credit card industry.

“To prevent parties that have previously agreed to arbitration from doing could potentially extirpate arbitration itself as a tool in the judicial process,” Cairns said. “We believe the Ninth Circuit’s ruling abrogates a legal right.”


CompuCredit and other defendants filed their petition for certiorari on January 24.

About DRI – The Voice of the Defense Bar


DRI – The Voice of the Defense Bar is an international organization of defense attorneys and corporate counsel that is recognized as a thought-leader and an advocate for the defense bar at the national and state level as well as in Europe. With more than 22,000 members, DRI provides members and their clients with access to world-class education, legal resources and numerous marketing and networking opportunities that facilitate career and law firm growth. For more information log on to www.dri.org : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .



for DRI – The Voice of the Defense BarDerede

McAlpin, 202-973-1314 dmcalpin@levick.com : mailto:dmcalpin@levick.com