Firchow v. Citibank
Citibank (South Dakota), N.A. appeals from an order denying its petition to compel arbitration of a putative statewide class action lawsuit filed by Dale Firchow, a Citibank credit card member. The lawsuit alleges Citibank and Ford Motor Company (Ford) prematurely and improperly terminated a credit card rebate program in violation of the Consumer Legal Remedies Act (CLRA) (Civ. Code, S 1750 et. seq.) and California's false advertising and unfair competition laws (Bus. & Prof. Code, SS 17500, 17200). Citibank unsuccessfully sought arbitration of the dispute in accordance with a provision in the applicable credit card agreement that subjects such disputes to individual binding arbitration and prohibits proceeding in arbitration on a class or representative basis.
On appeal Citibank contends the trial court erred in finding the class action waiver provision unconscionable under California law and denying the motion to compel arbitration. Citibank urges the trial court should have applied South Dakota law in accordance with the choice of law provision in the credit card agreement and contends under South Dakota law the arbitration clause, including the class action waiver provision, is enforceable. Court affirm.
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