Herrington v. Union Planters Bank

**What Happened** Herrington sued Union Planters Bank for allegedly breaking their contract and violating the Truth in Savings Act, which requires banks to clearly disclose savings account terms to customers. The dispute centered around the bank's deposit agreement, which contained an arbitration clause requiring disputes to be resolved through private arbitration rather than in court. **The Court's Decision** The Fifth Circuit Court of Appeals ruled in favor of the bank. The court enforced the arbitration clause in the deposit agreement, meaning Herrington had to take the dispute to arbitration instead of pursuing it in court. The court rejected all three arguments that Herrington made against the arbitration provision and dismissed the Truth in Savings Act claims. **What This Means for Workers** This ruling reinforces that arbitration clauses in employment and service contracts are generally enforceable. Workers should carefully read any agreements they sign, as these clauses can prevent them from taking disputes to court. Instead, they may be required to resolve conflicts through private arbitration, which typically has different rules and procedures than traditional lawsuits. Workers considering legal action should check their contracts for arbitration requirements first.