Washington Mutual Finance Group v. Bailey
United States Court of Appeals, Fifth Circuit
364 F.3d 260 (2004)
Relevant factsFree
Bailey (defendant), who is illiterate and told Washington Mutual Finance (plaintiff) so, signed loan and insurance agreements containing arbitration clauses without the terms being read or explained to him; when a dispute arose, WM Finance sought to compel arbitration, and the federal district court found the arbitration clauses unenforceable given Bailey's inability to read and WM Finance's failure to explain the terms. WM Finance appealed.
IssueFree
Whether the inability to read and understand an arbitration agreement renders that agreement unconscionable and unenforceable.