In a significant ruling that aligns with recent U.S. Court of Appeals decisions, U.S. District Judge Lynn Adelman for the Eastern District of Wisconsin denied a motion to compel Kohl’s Corporation to enter arbitration, citing the retailer’s refusal to pay required administrative fees. The case, Ana Bernal v. Kohl’s Corp., saw plaintiffs seeking court intervention to enforce arbitration terms included in Kohl’s terms and conditions.
Judge Adelman’s September 13 opinion noted that Kohl’s declined to either register the arbitration agreement or cover the fees, prompting the American Arbitration Association (AAA) to close the files. The plaintiffs argued that Kohl’s should be compelled to pay the fees and proceed with arbitration, but the court’s decision was to uphold the closure by AAA based on the retailer’s non-payment.
The judge emphasized that according to Rule 12 of the AAA’s Consumer Arbitration Rules, the petitioners are at liberty to pursue their substantive claims in court. This interpretation follows a line of recent precedents questioning enforcement and cost obligations in arbitration agreements.
For additional context and a more detailed analysis, you can access the original article here.