CitiFinancial, Inc. v. Brown
United States District Court, N.D. Mississippi
2001 WL 1530352 (2001)
In December 1998, John Brown (defendant), a severely mentally disabled man, and his mother, Catherine Brown (defendant), took out a debt consolidation loan with CitiFinancial, Inc. (Citi) (plaintiff). The loan contained an arbitration clause requiring the Browns to submit any claims they might have against Citi to arbitration. Citi required both John and Catherine to sign the loan agreement. Despite the arbitration clause in the agreement, John Brown filed a civil action against Citi in Mississippi state court. His mother, Catherine, was not a party to this suit. Citi then filed a petition to compel arbitration in federal district court and to stay John Brown’s civil action in state court.
Rule of Law
Holding and Reasoning (Davidson, C.J.)