Law360 Quotes Chris Smith on N.C. Supreme Court Case Challenging Consumer Agreement Amendments

Law360 quoted Smith Anderson business litigation attorney Chris Smith in the article “Credit Union Tells NC Justices Arbitration Add-On is Valid” that covers a North Carolina Supreme Court case in which a credit union is asking the state’s highest court to validate an added arbitration provision in its user agreement.

The credit union argues that a plaintiff and former customer of Charlotte Metro Credit Union should be required to arbitrate a dispute over allegedly unlawful overdraft fees. Charlotte Metro contends that businesses can add arbitration clauses to existing contracts if certain requirements are met; in this case, Law360 reports, the credit union argues that the plaintiff’s continued use of her account without opting out constituted acceptance. The plaintiff argued that she never saw the emails and did not agree with the clause.

The North Carolina Chamber Legal Institute filed a brief with the court on behalf of Charlotte Metro Credit Union, with Chris representing the institute and stating that amendments to online agreements are a normal part of modern commerce.

"The plaintiffs and some of their amici would undo that in North Carolina, making us unique among the 50 states," Chris said. "It would not be good for the business climate of North Carolina — which our clients are focused on improving."

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