United States District Court, E.D. Michigan, Southern Division
ANDRE D. WEST, Plaintiff,
LEGACY MOTORS, INC., et. al., Defendants.
OPINION AND ORDER GRANTING DEFENDANTS' MOTIONS TO
COMPEL ARBITRATION AND DISMISS
H. CLELAND, UNITED STATES DISTRICT JUDGE.
matter arises from the circumstances surrounding the sale of
a vehicle by Defendant Legacy Motors Inc. to pro se Plaintiff
Andre West, with financing provided by Defendant Credit
Acceptance Corp. (Dkt. # 1.) Plaintiff alleges violations of
the Truth in Lending Act, 15 U.S.C. § 1638(b), the
Michigan Consumer Protection Act, Mich. Comp. Laws §
445.903, and common-law fraud. (Id.) Each Defendant
has filed a Motion to Compel Arbitration and Dismiss under
the Federal Arbitration Act, 9 U.S.C. § 1 et. seq.,
citing the written arbitration agreement signed by Plaintiff.
(Dkt. ## 11, 12.) Plaintiff argues that the arbitration
clause is unconscionable. (Dkt. ## 1, 14.) After reviewing
the motions and Plaintiff's Response, filed October 20,
2016 (Dkt. # 14), the court concludes that further briefing
and a hearing are unnecessary. See E.D. LR
7.1(f)(2). For the reasons that follow, the court will grant
following facts are undisputed unless otherwise noted.
Plaintiff entered into a “retail installment
contract” with Legacy Motors to purchase a 2006
Cadillac in June of 2015. (Dkt. # 12-1, Pg. ID 113.) Legacy
immediately assigned its interests in the contract to Credit
Acceptance. (Id. at Pg. ID 116.) The written
contract contained a page-long arbitration clause.
(Id. at Pg. ID 117.) On the first page, two
provisions refer to the arbitration clause, reading:
Arbitration Notice: PLEASE SEE PAGE 4 OF THIS CONTRACT FOR
INFORMAITON REGARDING THE AGREEMENT TO ARBITRATE CONTAINED IN
ADDITIONAL TERMS AND CONDITIONS: THE CONDITIONAL TERMS AND
CONDITIONS, INCLUDING THE AGREEMENT TO ARBITRATE SET FORTH ON
THE ADDITIONAL PAGES OF THIS CONTRACT ARE A PART OF THIS
CONTRACT AND ARE INCORPORATED HEREIN BY REFERENCE.
(Id. at Pg. ID 113 (emphasis in original).) The
arbitration clause, on the fourth page of the contract,
A “Dispute” is any controversy or claim between
You and Us arising out of or in any way related to this
Contract, including, but not limited to, any default under
this Contract, the collection of amounts due under the
contract, the purchase, sale, delivery, set-up, quality of
the Vehicle, advertising for the Vehicle or its financing, or
any product or service included in this Contract.
“Dispute” shall have the broadest meaning
possible, and includes contract claims, and claims based on
[sic] tort, violations of laws, statutes, ordinances or
regulations or any other legal or equitable theories.
Either You or We may require any Dispute to be arbitrated and
may do so before or after a lawsuit has been started over the
Dispute or with respect to other Disputes or counterclaims
brought later in the lawsuit. If You or We elect to arbitrate
a Dispute, this Arbitration Clause applies . . . .
If You or We elect to arbitrate a Dispute, neither You nor We
will have the right to pursue that Dispute in court or have a
jury resolve that dispute . . . .
It is expressly agreed that this Contract evidences a
transaction in interstate commerce. This Arbitration Clause
is governed by the FAA and not by any state arbitration law.
(Id. at Pg. ID 117.) Plaintiff also had the right to
reject the arbitration clause without affecting the balance
of the agreement, which he did not do. (Id.)
states that every written provision in a contract
“evidencing a transaction involving commerce to settle
by arbitration a controversy thereafter arising out of such
contract . . . shall be valid, irrevocable, and enforceable,
save upon such grounds as exist at law or in equity for the
revocation of any contract.” 9 U.S.C. § 2. The act
requires federal courts to stay an action when the issue in
the proceeding is referable to arbitration and to compel
arbitration when one party fails or refuses to comply with
the provisions of an enforceable ...