Judge Rejects Arbitration for Online Banking Security Case

Consumers Need "More" than "Reasonable" Security

According to Bank Info Security, "The judge in the PlainsCapital Bank case struck down the bank's requests to waive a jury trial and to move the case to arbitration."  

Bank vs. Business: Judge Rejects Motions

No Arbitration to Settle Question of 'Reasonable Security'

by Linda McGlasson

Judge Amos Mazzant, U.S. Magistrate Judge in the U.S. District Court, Eastern District of Texas, says in his one-page order that he is denying the motion to strike the jury, calling the request "premature." Judge Mazzant also found that the bank's motion to compel arbitration as an alternative to the motion to strike jury demand "is not appropriate."

This case began when PlainsCapital, a $4.4 billion bank headquartered in Dallas, filed suit against Hillary Machinery Inc., following a series of incidents that began last November, when cyber thieves made a series of ACH and wire transactions that totaled $801,495 from Hillary's bank account.

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