Hayes v. County Bank
Patricia Hayes initiated a class action challenging the arbitration clause in loan documents provided by a federally-insured bank, seeking to declare it void. The Supreme Court, Queens County, compelled arbitration and stayed the action, a decision Hayes appealed. The appellate court affirmed the lower court's order, ruling that the Federal Arbitration Act (FAA) did not bar the appeal and that the arbitration agreements were valid and enforceable. The court found no procedural unconscionability by Hayes and reiterated that precluding class actions does not inherently make agreements unconscionable. It also determined that the legality of the underlying loan agreements falls within the arbitrator's purview.