Plaintiff filed a lawsuit against an online company that offered monetary loans alleging violations of Illinois usury statutes and the federal Racketeer Influence and Corrupt Organizations Act. More than a year after the lawsuit was filed, defendants asked the district court to refer the case to an arbitrator citing an arbitration provision in the lending agreements signed by the plaintiff. The district court refused, finding that defendants had waived their right to arbitrate by participating in litigation. The Seventh Circuit affirmed, finding that the right to arbitrate was waived and that the issue was not moot, as had been argued by the defendants shortly before oral argument. (ROVNER, concurring and EASTERBROOK, separately concurring)
Federal 7th Circuit Court
Civil Court
Arbitration Clause