Plaintiffs, a group of consumers, filed arbitration claims before the American Arbitration Association alleging that defendants, through their electronic devices, unlawfully collected and stored biometric data in violation of Illinois law. Defendant refused to pay the administrative filing fees and the AAA terminated the arbitration proceedings. The plaintiffs then filed a petition to compel arbitration in federal court and the district court ordered defendant to pay the associated arbitration filing fee. Defendant appealed and the Seventh Circuit reversed, finding that the plaintiffs failed to meet their evidentiary burden in proving the existence of an arbitration agreement and noting that because the parties’ alleged agreement incorporated AAA’s rules and procedures, the AAA had substantial discretion over resolving fee disputes. (EASTERBROOK and SYKES, concurring)
Federal 7th Circuit Court
Civil Court
Arbitration Agreement