In a warning to the industry, a state judge in California has rejected Bank of America's bid to enforce a binding arbitration contract with a checking account holder.

Judge Patti S. Kitching of the state's second appellate district ruled that Bank of America forfeited its claim because it conducted pre-trial discovery and filed motions for more than a year before demanding arbitration.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.