Arbitrators to Determine Arbitrability of Wells Fargo PPP Loan Action
December 21, 2020
HOUSTON — A Texas federal judge has ruled that arbitrators must determine the arbitrability of claims accusing Wells Fargo Inc. of prioritizing certain businesses over others for Paycheck Protection Program loan processing and submission.
In a Dec. 18 order, Judge Alfred H. Bennett of the U.S. District Court for the Southern District of New York found the claims fall within an arbitration clause included in banking documents signed by the plaintiff.
The PPP is a $350 billion loan program created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act amended the Small Business Act and directed …
- Kennard Law
- Sullivan & Cromwell