In a significant ruling, a Pennsylvania federal judge found that the arbitration agreement within a loan app company’s “clickwrap agreement” provided adequate notice to enforce arbitration. This decision was made despite previous state appellate rulings that called for a higher standard of proof for such agreements. U.S. District Judge Susan Rose Paradise Baxter of the Western District of Pennsylvania rejected a proposed class action’s attempts to invalidate the arbitration agreement in Happy v. Marlette Funding. This ruling favors the defendant, Marlette Funding, which operates under the personal loan app Best Egg.
The plaintiffs had relied on a July 2023 Superior Court decision asserting that a stricter burden of proof is required to demonstrate a party’s clear agreement to arbitration in Pennsylvania. For more details, refer to the original article.