Geoffroy v. Washington Mutual Bank

ORDER DENYING DEFENDANT’S MOTION TO COMPEL ARBITRATION AND MOTION TO STAY

BENITEZ, District Judge.

I. INTRODUCTION

Plaintiffs are retirees who opened a joint consumer checking account at their local branch of Defendant Washington Mutual Bank. They deposited $80,000 in the account and went on a three-month vacation. Upon returning, they discovered the account had been drained dry and overdrawn by $20,000 by someone else. The bank took the position that it was not at fault and demanded repayment of the overdraft. Plaintiffs then brought the instant action alleging a federal claim under the…