Third Circuit Permits Limited Discovery On Issue Of Validity Of Arbitration Agreement

In an unpublished opinion, the Third Circuit affirmed a decision denying a defendant bank's motion to dismiss a consumer complaint in favor of arbitration when the contract containing the arbitration clause was not referenced in or attached to the complaint, agreeing that the plaintiff should be allowed to engage in limited discovery on the issue of the validity of the arbitration agreement.

The plaintiff, a customer of the defendant bank, sued alleging that the defendant's overdraft protection program violated federal law and breached a contract with the plaintiff. According to the defendant, it had three contracts with the plaintiff: an account agreement, an overdraft protection agreement, and a service agreement related to electronic money transfers. The plaintiff alleged the existence of the account and overdraft protection agreements, but her complaint did not mention the service agreement, and the plaintiff filed a declaration stating that she had no