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Aames Funding Corp. v. Sharpe
United States District Court for the Eastern District of Pennsylvania
2004 WL 2418284 (2004)
Rosie Sharpe (defendant) took out a loan and entered into a home-improvement contract with Aames Funding Corporation (Aames) (plaintiff) and its agents. The agreement included an arbitration provision stating that the parties would arbitrate all disputes related to the agreement; however, Aames reserved the right to litigate foreclosure proceedings, bankruptcy applications, or any of Aames’s claims for damages due to Sharpe’s default. A dispute arose regarding the cash amount Sharpe was supposed to receive from the home-improvement loan, and Sharpe filed suit in Pennsylvania state court against Aames and its agents. Aames filed a petition in federal district court to compel arbitration under the Federal Arbitration Act (FAA), citing the arbitration provision in the home-improvement contract. Sharpe argued that the agreement was unenforceable due to unconscionability.
Rule of Law
Holding and Reasoning (Padova, J.)
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