Reference no: EM131675026

Question: Washington State resident Patty Gandee entered into a debt adjustment contract with Freedom Enterprises. She subsequently sought to file a class action against them for violations of the state debt adjusting act and the Consumer Protection Act. The company sought to compel arbitration based on a binding arbitration clause she had signed. The clause provided that any disputes under the contract were to be submitted to arbitration that would take place in Orange County, California, under American Arbitration Association rules, and the prevailing party would be entitled to reasonable legal fees and costs, including attorney fees. Both the trial court and the Washington Supreme Court refused to enforce the binding arbitration clause. Explain why they would not enforce the clause.