McKenzie Check Advance of Mississippi, LLC v. Hardy

Summary

The Mississippi Supreme Court reviewed interlocutory appeals concerning motions to compel arbitration in disputes involving delayed-deposit check-cashing transactions. The court held that the transactions involved interstate commerce, making the Federal Arbitration Act applicable, and concluded that the arbitration agreements were enforceable despite arguments concerning mutuality of obligation, unconscionability, and waiver of the right to a jury trial. The court reversed the circuit court's judgments and remanded with instructions to grant the motions to compel arbitration.

Holdings

1. The Federal Arbitration Act applies because the delayed-deposit check-cashing transactions involved interstate commerce and the parties expressly agreed that the FAA governed the arbitration agreements.
2. Mutuality of obligation is not required for an arbitration agreement to be enforceable under Mississippi law so long as the agreement is supported by consideration.
3. The circuit court erred by relying on Justice Diaz's concurrence in Parkerson v. Smith because the concurrence was not the holding of the court, and the arbitration provisions at issue were factually distinguishable from the provision discussed in that concurrence.
4. The customers knowingly, intelligently, and voluntarily waived their constitutional right to a jury trial by signing the conspicuous, plain-English arbitration agreements.

Questions Presented

1. Whether the transactions evidenced interstate commerce such that the Federal Arbitration Act applied.
2. Whether the arbitration agreements were unenforceable under Mississippi law for lack of mutuality of obligation.
3. Whether the circuit court properly relied on the concurrence in Parkerson v. Smith to reject the arbitration agreements as unconscionable.
4. Whether the customers knowingly, intelligently, and voluntarily waived their constitutional right to a jury trial.

Disposition

reversed_and_remanded