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SHOWMETHEMONEY CHECK CASHERS v. WILLIAMS9/21/2000
re the District Court found that other consideration existed under Illinois law to support a one-sided arbitration requirement.
[8, 9] Ultimately, these federal cases interpreting state contract law indicate that it is state law that must be considered to determine an obligation of mutuality. Arkansas precedent on mutuality requires that the terms of the agreement must fix a real liability upon both parties. Townsend, supra. In the instant case, a review of the arbitration contract within the "Check Cashing Agreement" indicates that it fixed no real liability upon Showme. Showme drafted the language and specifically reserved to itself the right to institute legal action "to collect amounts due it." Under the terms of the agreement the only performance due Showme by its customers is payment. While the customers must submit all disputes and controversies of every kind and nature to arbitration, Showme may proceed immediately to court to collect amounts due it. Those amounts could include twice the amount of the check, a $20 collection fee, a reasonable attorney's fee, and court costs. Additionally, the so-called arbitration clause contains a limitation of remedies statement that forbids suit against Showme under any circumstances. Given the lack of mutuality to support the arbitration agreement, we hold the arbitration clause contained in the "Check Cashing Agreement" does not constitute a valid enforceable agreement to arbitrate and affirm the trial court's denial of Showme's application to compel arbitration. The laudable policy behind enforcing arbitration agreements is the belief that they provide a less expensive, more expeditions means of settling litigation and relieving congested court dockets. However, they should not be used as a shield against litigation by one party while simultaneously reserving solely to itself the sword of a court action. Having held the arbitration agreement invalid, we do not address questions of unconscionability and legality.
Affirmed.
Glaze, J., not participating.
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