Law Firm Can Force Debt-Counseling Client to Arbitrate Claims

A former client must arbitrate claims alleging a law firm engaged in racketeering and other unlawful practices while retained to help her resolve obligations to creditors, the Third Circuit said, vacating an order that denied the firm’s motion to compel arbitration.

The arbitration agreement at issue is valid and governs claims alleging violations of New Jersey statutory laws, the U.S. Court of Appeals for the Third Circuit said Wednesday in a nonprecedential opinion.

In 2013, Caren Frederick entered into a professional legal services agreement with Fox Kohler & Associates PLLC to help negotiate her accounts with creditors.

Six years later, ...