American Bankers Insurance Company of Florida v. Gladys Tellis American Bankers Insurance Company of Florida V…

Summary

The Alabama Supreme Court reversed the trial courts and remanded, holding that the policyholders ratified the arbitration provisions by renewing and paying premiums, that the insurance sales affected interstate commerce, and that the arbitration clause was not unconscionable, thus granting American Bankers’ motions to compel arbitration. The dissent argued the FAA is unconstitutional under the Seventh Amendment and that the waiver was not knowing, willing, or voluntary.