MD STATECourt of Appeals of Maryland
2005

Walther v. Sovereign Bank

872 A.2d 735Court of Appeals of Maryland • Decided 2005Enforced
FLAGSHIPDispute ResolutionCited 159 times

HOLDING

A Maryland court upheld an arbitration clause in a mortgage loan agreement, ruling it was not unconscionable because it was clearly displayed and the borrower had a chance to read it. The lender did not waive its right to arbitration by also asking for dismissal on other grounds. This case matters to subcontractors because it shows courts will enforce arbitration clauses in contracts if they're clearly written and visible, even if one party later tries to pursue other legal remedies.

KEY FINDINGS

Dispute Resolution

Make arbitration clauses conspicuous and easy to find in your subcontract agreements—courts are more likely to enforce them if they're not hidden in fine print

FULL COURT OPINION