The Revival of Badie Arbitration Suits in Consumer Finance
2 minute read | March.19.2025
In this Law360 article, Lauren Erker, Sarah Davis and James McGuire analyze plaintiff challenges to arbitration clauses added via change-in-terms provisions and how companies can mitigate litigation risk. While Badie v. Bank of America is a fact-specific, decades-old decision, courts remain divided on its application, with some invalidating arbitration agreements over notice deficiencies or implied covenant violations. Companies seeking to revise or add an arbitration provision need to be aware of recent Badie developments and should consider employing the strategies identified in the article to avoid a Badie roadblock.