Judge: Colin Leis, Case: 23STCV28925, Date: 2024-10-09 Tentative Ruling

Case Number: 23STCV28925    Hearing Date: October 9, 2024    Dept: 74

Defendant Mulligan Funding’s Motion to Compel Arbitration.

In 2022, the parties entered into a “Business Loan and Security Agreement” which included section 33 entitled “Arbitration/Class Action Waiver.” The agreement provides, in pertinent part:

To the extent that a claim or dispute arises out of, or in relation to [the Business Loan Agreement], including without limitation, the terms, construction, interpretation, performance, termination, breach, or enforceability of [the Business Loan Agreement], the parties hereby agree that the claim or dispute shall be, at the election of either party, resolved by mandatory binding arbitration in Utah within a reasonable time period not to exceed ninety (90) days.

In November 2023, Plaintiff MJ Global Enterprise, Inc. filed a complaint alleging six causes of action against Mulligan Funding, LLC, FinWise Bank, and Does 1-50 (Defendants): (1) Fraud and Deceit; (2) Usury; (3) Unfair Business Practices; (4) Violation of California Financing Law; (5) Injunction and (6) Conspiracy to Commit Fraud. On January 19, 2024, Defendants filed a motion to compel arbitration to which Plaintiff has not filed an opposition.

Based on the foregoing, the court grants the motion to compel.

            The court stays court proceedings pending the arbitration.