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TORRENCE v. NATIONWIDE BUDGET FINANCE

No. COA12-453.

753 S.E.2d 802 (2014)

James P. TORRENCE, Sr., and Tonya Burke, on behalf of themselves and all other persons similarly situated, Plaintiffs v. NATIONWIDE BUDGET FINANCE, QC Holdings, Inc., QC Financial Services, Inc. Financial Services of NC, Inc. and Don Early, Defendants.

Court of Appeals of North Carolina.

February 4, 2014.

Attorney(s) appearing for the Case

Hartzell & Whiteman, L.L.P., by J. Jerome Hartzell , and North Carolina Justice & Community Development Center, by Carlene McNulty , for plaintiff-appellees.

Ellis & Winters LLP, by Paul K. Sun, Jr. and Kelly Margolis Dagger , and Katten Muchin Rosenman LLP, by Claudia Callaway , for defendant-appellants.

STEELMAN, Judge.

Where the arbitrator named in the arbitration agreement was no longer conducting arbitrations, the trial court erred in not appointing a substitute arbitrator pursuant to § 5 of the Federal Arbitration Act. Based upon the decisions of the United States Supreme Court in Concepcion and Italian Colors, the trial court erred in holding that the arbitration agreement was unconscionable and refusing to compel arbitration.

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