From our private database of 28,700+ case briefs...
Phillips v. Associates Home Equity Services
United States District Court for the Northern District of Illinois
179 F. Supp. 2d 840 (2001)
Juan Phillips (plaintiff) obtained a residential mortgage loan from Associates Home Equity Services, Inc. (Home Equity) (defendant). Home Equity offered various loans and services and specialized in providing credit to people with poor credit. Phillips was an individual with poor credit and was in severe financial straits. As part of the loan process, Phillips signed a variety of statements and agreements. Phillips also entered into a written arbitration agreement with Home Equity. The agreement provided that all disputes between Phillips and Home Equity in connection with the loan would be resolved through arbitration with the American Arbitration Association (association). The agreement also included a provision governing potential arbitration costs. Whichever party initiated arbitration would pay the filing fee and required deposit. If Phillips felt she was unable to pay the costs, she could ask the association to defer or lower them. If the association did not lower the fees, Home Equity would initially pay them but would have the arbitrator allocate the fees between the parties later. Other costs would be allocated according to the Commercial Arbitration Rules. The rules stated that the other costs of arbitration, such as arbitrator fees, travel costs, and room rentals, would be split equally by the parties, unless the parties agreed otherwise. A dispute over the loan eventually arose, and Phillips notified Home Equity that she wanted to rescind her loan agreement. Phillips then filed suit in federal district court, alleging violation of the Truth in Lending Act. Home Equity filed a motion to stay proceedings and compel arbitration under the Federal Arbitration Act (FAA). Phillips opposed the motion, claiming that arbitration was prohibitively expensive.
Rule of Law
Holding and Reasoning (Kennelly, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 546,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 546,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 28,700 briefs, keyed to 984 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.