Court Denies Trilegiant’s Motion To Dismiss And Motion To Compel Arbitration

March 1st, 2011

On February 24, 2011, the Honorable Janet C. Hall issued a decision denying Trilegiant’s Motion to Dismiss or Stay and Compel Arbitration. The case, captioned Schnabel, et al. v. Trilegiant Corp., et al., No. 10-00957, is pending in the United States District Court for the District of Connecticut and alleges that Defendants induced Plaintiffs into paying for online discount programs they never knew they were purchasing. Through their Motion, Defendants argued that Plaintiffs were bound by an arbitration clause. While Defendants’ Motion was pending, the Court had stayed discovery. Ultimately, the Court held that Plaintiffs did not enter into an arbitration agreement with Defendants and that the parties should proceed with discovery.