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SCOTUS case on arbitration waiver is settled
June 07, 2011 by Ross Runkel at LawMemo

Stok & Associates v. Citibank was pending in the US Supreme Court, but the parties have settled, and the Court dismissed the case. [Order]

Stok and Citibank had a contract governing their banking relationship, and the contract contained an agreement to arbitrate all disputes. After a dispute arose regarding Citibank's handling of a check, Stok sued in state court alleging a number of state law claims. Citibank filed an answer which made no reference to arbitration. Over the following two weeks, Stok made four filings relevant to its case (offer of judgment, request for production, reply, notice of readiness for trial) and the court set a trial date. Two weeks later Citibank filed a motion to compel arbitration in state court. Another month later Citibank filed a petition to compel arbitration in federal court, which was denied. The 11th Circuit reversed.

The 11th Circuit reasoned that Citibank's participation in litigation did not result in prejudice to Stok. Citibank delayed for only one month before invoking its right to arbitrate, and Stok could not point to any portion of the record that reveals either the amount of money it spent or the number of hours it dedicated to conducting litigation-specific discovery and preparing litigation-specific documents.

The US Supreme Court granted certiorari to review the 11th Circuit judgment. The Supreme Court dismissed the case on June 2, 2011 because the parties settled.

The terms of the settlement have not been disclosed.

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