Legal Question in Real Estate Law in California
What does a notice of waiver of arbitration rights mean ?
I am reviewing my Heloc docs from wells fargo and cant seem to figure out what the document entitled '' Wells Fargo Bank Notice of waiver of Arbitration Rights'' It says '' wells fargo is pleased to inform you that it has decided that it will not assert its right to require you to arbitrate if you bring a claim against wells fargo or is wells fargo brings a claim aginst you . What exactly does this mean ?
2 Answers from Attorneys
Re: What does a notice of waiver of arbitration rights mean ?
It means that any lawsuit you might have against Wells Fargo (or that it might have against you) would go to court rather than to arbitration. Some prefer to leave their fate in the hands of 12 strangers on a jury rather than a single paid arbitrator.
Re: What does a notice of waiver of arbitration rights mean ?
I have a different view. I think Wells is waiving its rights to demand arbitration under a clause that is buried in its standard HELOC contract because courts have held it to be unenforceable anyway because of being in the fine print and hence what is termed an "unconcionable" contract of adhesion. They may even have been ordered to waive arbitration in future loans. In any case, their waiver is not YOUR waiver. If there is an arbitration clause, YOU can still enforce it (I would think) against Wells. Hopefully, neither you nor the bank will ever have to resort to legal action against one another, arbitration or court!
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