Non-Signatory May Invoke Class Action Waiver, Federal Judge Rules

NEW YORK — A non-signatory to a promissory note may invoke the class action waiver in an arbitration provision under the doctrine of equitable estoppel because there was a close relationship between the consumer, the non-signatory and the controversy, a New York federal judge has ruled.

On Aug. 30, Judge Thomas P. Griesa of the U.S. District Court for the Southern District of New York further ruled that the arbitration clause was not unconscionable pursuant to AT&T Mobility LLC v. Concepcion.

In 2006, plaintiff Joshua Fensterstock consolidated his student loans with Education Finance Partners. Affiliated Computer Systems serviced the consolidation …