Discover Bank v. Superior Court
California Supreme Court
113 P.3d 1100 (2005)
Christopher Boehr (plaintiff) obtained a credit card from Discover Bank (defendant). Discover sent its cardholders an amendment to the cardholder agreement, adding an arbitration clause. The arbitration clause prohibited cardholders from participating in classwide arbitration. The amendment notice told cardholders that if they chose to not accept the amendment, they could terminate their Discover account. Boehr did not inform Discover of any objection to the clause and did not terminate his account. Approximately two years later, Boehr filed a class action suit in superior court, alleging that Discover engaged in a deceptive practice. Pursuant to the arbitration clause, Discover filed a motion to compel arbitration with Boehr individually and to dismiss the class action suit. The California Supreme Court granted review.
Rule of Law
Holding and Reasoning (Moreno, J.)
Concurrence/Dissent (Baxter, J.)
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