recover, among other things, attorneys’ fees). The arbitration
clauses here do not forbid the arbitrator from awarding attorneys
fees. Thus, there is no reason to believe that Mr. Sarver will be
unable to vindicate effectively his rights under the FCRA in
arbitration.

Defendant Cross Country Bank’s motion to compel arbitration

and stay proceedings as to it is GRANTED

ENTER ORDER:
OD

“Elaine E, Bucklo
United States District Judge

Dated: May RE , 2003



from a number of other credit card offers).

Here, the arbitration clauses cover all disputes that “arise
out of” the cardmember agreements. Arbitration agreements covering
disputes “arising out of” a contract reach “all disputes having
their origin or genesis in the contract.” Sweet Dreams Unlimited,
Ine. v. Dial-A-Mattress Int’l Ltd., 1 F.3d 639, 642 (7th Cir.
1993). As Mr. Sarver’s complaint alleges failure to correct
and unlawful reporting of information regarding his credit card
accounts, this dispute has its genesis in the cardmember
agreements, and is thus covered by the arbitration clause.

Mr. Sarver also argues that the arbitration clauses here are
contrary to public policy because they do not provide for the
awarding of attorneys’ fees, which are necessary to fulfill the
public policy behind consumer protection statutes such as the FCRA,
It is well established that statutory rights may be arbitrated “so
long as the prospective litigant effectively may vindicate his or
her statutory cause of action in the arbitral forum.” Green tree
Fin. Corp.-Alabama v. Randolph, 531 U.S. 79, 90 (2000) (interna)
quotations omitted). While a prohibition against awarding fees in
arbitration could preclude arbitration of statutory rights, the
arbitration clauses here contain no such prohibition. Cf, Graham
Oil Co. v. ARCO Products Co., 43 F.3d 1244, 1247-48 (9th Cir. 1994)
(holding that court, not arbitrator, must decide claims under the
Petroleum Marketing Practices Act because arbitration clause at

issue expressly forfeited parties’ statutorily-mandated right to



Minute One Form (60/97)

United States District Court, Northern District of Minois

Name of Assigned Judge Elaine £. Bucklo Sitting Judge if Other
or Magistrate Judge . than Assigned Judge
CASE NUMBER 02 C7409 DATE 5/22/2003
CASE Sarver vs. Trans Union, et al.
TITLE
[Jn the following box (a) indicate the party filing the motion, c.g... plaintis¥, defendant, 3rd party plaintiff, and (b) state hriefly die aacure
MOTION: of the motion being presemted.|
DOCKET ENTRY:
(ap) Oo Filed motion of [ use listing in “Motion” box above.]
(2) i Brief in support of motion duc
(3) o Answer brief to motion due . Reply to answer brief due.
(3) oO Ruling/Mearing on set for at
(5) oO Status hearing|held/continued to} [sct for/re-set for] on set for at
(6) oO Pretrial conferencefheld/continued to] [set for/re-set for] on __ set for at
(7) a Triallyot for/re-set for] on at _
(8) o [Bench/Jury trial] [flearing] held/continued to ato
(9) u This case is dismissed [with/without] prejudice and withoul costs[by/agreement/pursuant to]
OFRCP4m) OLocai Rule 41. [I FRCP41(a)(1) OO FRCP41(a)(2).
ao [Other docket entry) Enter Memorandum Opinion and Order granting defendant Cross Country
Bank’s motion to compel arbitration and stay proceedings as to il. ‘This stay does not apply to defendant
Trans Union.
(11) [For further detail sec order attached to the original minute order.]
No notices required, wlyised in open court Document
: % Number.
‘No notices required. univer of motos
ty | Notices mailed by judge’s staff. 4
AS MAY 2 3 7003
Notified counsel by telephone dss docks
Docketing to muil notices. peat fi
Copy to judge/mugisteate judge. we
ie % /2a/o%
fw mpiod nvice
courtroom be
MPI deputy’s Ipeee Lc -
initials Seca pugs WL F
Dale/time received it
central Clerk's Ofltce sratiny dept initia



IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

LLOYD SARVER,
Plaintiff,
v.
No. 02 C 7409

TRANS UNION, LLC and CROSS COUNTRY
BANK,

Defendants.

MEMORANDUM OPINION AND ORDER
Plaintiff Lloyd Sarver filed a two count complaint against
defendants Trans Union, LLC (“Trans Union”) and Cross Country Bank
(“Cross Country”). Count one asserted a violation of the Fair
Credit Reporting Act, 15 U.S.C. §8 1681-1681t (“FCRA”), by Trans
Union, and count two asserted a violation of the FCRA by Cross
Country. trans Union filed an answer to the complaint. Cross
Country, on the other hand, filed a motion to compel arbitration
and stay proceedings as to plaintiff's claim against it. I grant
the motion.
Mr. Sarver opened two credit card accounts with Cross Country.
He alleges that Cross Country has been reporting inaccurate
information regarding Mr. Sarver and his credit history to third
parties in violation of the FCRA. Cross Country seeks to compel
arbitration of this claim based on arbitration clauses found in

cardmember agreements associated with Mr. Sarver’s accounts.

NA


Under the Federal Arbitration Act, 9 U.S.C. § 1 et seq.
(“FAA”), once I am satisfied that the making of the agreement to
arbitrate is not in issue, I must order the parties to proceed to
arbitration in accordance with their agreement. 9 U.S.C. § 4. An
agreement to arbitrate “shall be valid, irrevocable, and
enforceable, save upon such grounds as exist at law or in equity
for the revocation of any contract.” 9 U.S.C, § 2.

Mr, Sarver acknowledges that his activation and use of the
credit cards made the cardmember agreements effective. {Pl.’s
Resp. Def.’s Mot. Compel Arbitration at 2, 11.) Mr. Sarver argues
that the agreements to arbitrate are not valid, however, because
they are unconscionable. Under either Delaware or Illinois law
the arbitration clauses here are not unconscionable. See Graham v.
State Farm Mut. Auto, Ins. Co., 565 A.2d 908, 912-13 (Del, 1989
{holding that an arbitration clause in a “take-it-or-leave-it”
adhesion insurance contract was not unconscionable, even when the
insured was not provided with a copy of the policy until after
coverage had begun); Larned v, First Chicago Corp., 636 N.f.2d
1004, 1006 (I1]1. App. Ct. 1994) (holding that mere fact that
challenged clause was contained in an adhesion contract offered by
a credit card company did not support a finding of

unconscionability because the consumer freely chase the credit card

' Mr. Sarver is a citizen of Illinois, while Cross Country is

headquartered in Delaware. Further, all the cardmember agreements
at issue contain a Delaware choice of law clause.

2