Henry v. Cash Biz, LP

Summary

The Texas Supreme Court held that borrowers' claims concerning a lender's use of the criminal justice system to collect payday loans fell within a broadly worded arbitration agreement. The court further held that the lender did not waive arbitration by providing information about dishonored checks to the district attorney, because the borrowers presented no evidence that the lender substantially invoked the judicial process. The court affirmed the court of appeals and required arbitration.

Holdings

1. The borrowers' claims fell within the scope of the arbitration provision because the provision covered all disputes arising from or relating directly or indirectly to the loan agreements, and the claims were based on Cash Biz's method of collecting loans made under those agreements.
2. Cash Biz did not waive its right to arbitrate because the borrowers failed to prove that Cash Biz substantially invoked the judicial process. Providing information about returned checks to the district attorney, without evidence that Cash Biz filed formal charges, participated in criminal trials, or obtained criminal judgments, was insufficient.

Questions Presented

1. Whether the borrowers' claims arising from Cash Biz's reporting of returned checks and alleged use of the criminal justice system fell within the scope of the loan contracts' broad arbitration provision.
2. Whether Cash Biz impliedly waived its right to arbitrate by substantially invoking the judicial process through its conduct involving the criminal justice system.
3. Whether the trial court erred by refusing to enforce the contractual class-action waiver.

Disposition

affirmed