Kaitlyn Lawrence v. Finicity Corporation

Summary

The United States District Court for the Eastern District of California granted Finicity Corporation's motion to compel arbitration in Kaitlyn Lawrence's putative consumer action. The court held that Finicity's User Agreement was supported by sufficient consideration because Finicity provided services beyond mere bank connectivity and because its promise to arbitrate was not illusory. The court directed the Clerk to administratively close the case.

Holdings

1. The User Agreement was supported by sufficient consideration because Finicity provided services beyond the bank connectivity Lawrence was already entitled to receive through EveryDollar, including facilitating and securing bank connections and collecting, processing, maintaining, and using consumer financial data.
2. Finicity's promise to arbitrate was not illusory and constituted sufficient consideration because Clause Eight gave Lawrence the express power to reject any modification to the arbitration provision and require Finicity to adhere to the language in effect when she enrolled or purchased a service.

Questions Presented

1. Whether the User Agreement between Lawrence and Finicity was supported by sufficient consideration.
2. Whether Finicity's promise to arbitrate was illusory because Clause Eight allegedly permitted unilateral modification of the arbitration agreement as to some claims.

Disposition

other