Defendants Did Not Waive Right to Demand Arbitration Despite Delay, 3rd Cir. Rules

PHILADELPHIA — Plaintiffs in a dispute involving fees for the recording of deeds and mortgages must submit to arbitration even though the defendants demanded arbitration nearly three years after the action was filed, a federal appeals court has ruled, finding that an earlier demand would have been futile.

In a precedential opinion issued Sept. 8, a majority of the 3rd Circuit U.S. Court of Appeals reasoned that the defendants did not waive their right to demand arbitration because the demand would have been futile before the U.S. Supreme Court issued its ruling in AT&T Mobility LLC v. Concepcion.

Plaintiffs represent …