Quimbee logo
DMCA.com Protection Status
From our private database of 16,300+ case briefs...

Washington Mutual Finance Group v. Bailey

United States Court of Appeals, Fifth Circuit
364 F.3d 260 (2004)


Washington Mutual Finance Group (WM Finance) (plaintiff) provided a loan and insurance to Bailey (defendant), an illiterate individual. The loan and insurance agreements contained provisions stating that any disputes arising under the agreements must be submitted to arbitration. Bailey signed these agreements without being able to read them due to his illiteracy. Bailey informed WM Finance of his illiteracy, but WM Finance did not read or explain the agreements to Bailey. A dispute arose under the contracts, and Bailey brought suit against WM Finance in Mississippi state court. WM Finance filed a separate action in federal state court seeking to stay Bailey’s state action and compel arbitration of the dispute. The cases were consolidated in federal court. The federal court held that since Bailey could not read the contracts and WM Finance did not explain the contractual provisions to Bailey, the arbitration clauses were invalid and unenforceable. WM Finance appealed.

Rule of Law


Holding and Reasoning (Jolly, C.J.)

What to do next…

  1. 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 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. 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. Read more about Quimbee.

Here's why 370,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 16,300 briefs, keyed to 223 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.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial