At page 297 Presumption in favor of arbitration agreements113 citing cases“there is a strong presumption in favor of arbitration and a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity.”
- Chicken Mart, Inc. v. Indep. Specialty Ins. Co., No. 2:23-cv-06661 (E.D. La. Feb. 23, 2024).([T]here is a strong presumption in favor of arbitration and a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity.)
- Transp. Consultants, Inc. v. Certain Underwriters at Lloyd's, London, No. 2:23-cv-06585 (E.D. La. Dec. 15, 2023).([T]here is a strong presumption in favor of arbitration and a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity.)
- Mai TL, Inc. v. Velocity Risk Underwriters, LLC, No. 2:23-cv-05617 (E.D. La. Dec. 15, 2023).([T]here is a strong presumption in favor of arbitration and a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity.)
- Figear, LLC v. Indep. Specialty Ins. Co. Nat'l Registered Agents, Inc., No. 2:22-cv-01094 (E.D. La. July 18, 2022).([T]here is a strong presumption in favor of arbitration and a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity.)
- Bedeschi Am., Inc. v. Mach. Repair Int'l LLC, No. 2:21-cv-00164 (S.D. Tex. Jan. 28, 2022).([T]here is a strong presumption in favor of arbitration and a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity.)
- Mach. Repair Int'l LLC v. Bedeschi Am., Inc Do not docket in 2:21-cv-141. Case is Consol. under lead case No. 2:21-cv-164., No. 2:21-cv-00141 (S.D. Tex. Jan. 28, 2022).([T]here is a strong presumption in favor of arbitration and a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity.)
- Carlos Reyna v. Int'l Bank of Com., No. 16-40057 (5th Cir. Oct. 21, 2016).published([T]here is a strong presumption in favor of arbitration . . . .)
- Carlos Reyna v. Int'l Bank of Com., 839 F.3d 373 (5th Cir. 2016).published([T]here is a strong presumption in favor of arbitration _)
- Aleman, No. 2:26-cv-00263 (E.D. La. July 28, 2026).The Act creates “a strong presumption in favor of arbitration and a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity.” Parrott, 167 F.4th at 735 (quoting Carter v. Countrywide Credit Indu…
- Lopez, No. 5:25-cv-00069 (S.D. Tex. July 24, 2026).“a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity”
Show 102 more citing cases
- Heard, No. 6:26-cv-00266 (E.D. Tex. July 23, 2026).Tex. 2023) (quoting Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004)).
- Davis, No. 2:25-cv-01669 (W.D. La. June 11, 2026).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004).
- Parrott v. Int'l Bank, 167 F.4th 728 (5th Cir. 2026).published“[T]here is a strong presumption in favor of arbitration and a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity”
- Menifee, No. 4:24-cv-04262 (S.D. Tex. Nov. 6, 2025).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (Sth Cir. 2004).
- Cunningham v. Q Colony LLC, No. 4:24-cv-00500 (E.D. Tex. June 24, 2025).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004).
- Russell v. Rich, No. 4:24-cv-01114 (N.D. Tex. June 2, 2025).(noting that “a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity)
- Moore v. Green Dot Bank, No. 5:24-cv-01150 (W.D. Tex. May 5, 2025).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004) (citation omitted).
- Bautista v. Price Water House Coopers LLP, No. 3:24-cv-02593 (N.D. Tex. Mar. 27, 2025).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004).
- Arrive Nola Hotel, LLC v. Certain Underwriters at Lloyds, London, No. 2:24-cv-01585, 2025 WL 871608 (E.D. La. Mar. 20, 2025). La. 2020) (quoting Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004)). 94 Rec.
- Clark v. West Dealership, No. 5:24-cv-01423 (W.D. La. Jan. 27, 2025).However, if both questions are answered in the affirmative, the district court must consider whether “any federal statute or policy renders the claims nonarbitrable.”17 Because there is a strong federal policy favoring arbitration, the par…
- Shedelbower v. H-E-B Grocery Co., No. 5:24-cv-00384 (W.D. Tex. Oct. 25, 2024).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004) (citing Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 24 (1991)).
- Rossman v. Applied Materials, Inc., No. 1:24-cv-00203 (W.D. Tex. Oct. 8, 2024).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004).
- Martin v. City of Fort Worth, No. 4:24-cv-00480 (N.D. Tex. Sept. 26, 2024). “there is a strong presumption in favor of arbitration and a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity”
- Rummage v. Bluegreen Vacations Unlimited, Inc., No. 4:23-cv-00962 (E.D. Tex. Aug. 26, 2024). “Under Texas law, unconscionability includes two aspects: (1) procedural unconscionability, which refers to the circumstances surrounding the adoption of the arbitration provision, and (2) substantive unconscionability, which refers to the…
- Hartman v. Nat'l Oilwell Varco L P, No. 5:22-cv-00253 (W.D. La. Aug. 8, 2024).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004). “[A]ny doubts concerning the scope of arbitrable issues should be resolved in favor of arbitration, whether the problem at hand is the construction of the contra…
- Broad v. Nat'l Oilwell Varco L P, 744 F. Supp. 3d 651 (W.D. La. 2024).publishedCarter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004). “[A]ny doubts concerning the scope of arbitrable issues should be resolved in favor of arbitration, whether the problem at hand is the construction of the contra…
- Williams v. Wallace Fin., LLC, No. 3:24-cv-00662 (N.D. Tex. June 18, 2024).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004).
- Allen v. Equifax Info. Servs., LLC, No. 5:24-cv-00157 (W.D. Tex. May 16, 2024).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004) (citing Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 24 (1991)).
- Reid v. Cafe Habana Nola, LLC, No. 2:23-cv-07201 (E.D. La. May 7, 2024).No. 6-1, at 4 (citing Carter v. Countrywide Credit Indus., 362 F.3d 294, 297 (5th Cir. 2004).
- Delirium TV LLC v. Tran Dang, 714 S.W.3d 640 (Tex. App.—Houston [1st Dist.] 2024).publishedTex. Mar. 20, 2013) (citing Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004)); In re Oakwood Mobile Homes, Inc., 987 S.W.2d 571, 573 (Tex. 1999) (orig. proceeding), abrogated on other grounds, In re Halliburton…
- Esch v. CMH Homes, Inc., No. 3:23-cv-00477 (N.D. Miss. Feb. 20, 2024).“[T]here is a strong presumption in favor of arbitration”
- Leach v. HEB, No. 5:23-cv-01426 (W.D. Tex. Jan. 12, 2024).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004) (citing Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 24 (1991)).
- Leach v. HEB, No. 5:23-cv-01428 (W.D. Tex. Jan. 12, 2024).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004) (citing Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 24 (1991)).
- Kennedy v. Equifax Info. Servs. LLC, No. 5:23-cv-00470 (W.D. Tex. Dec. 13, 2023).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004) (citing Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 24 (1991)).
- Telly Sebastian Williams v. GC Servs. Ltd. P'ship, No. 3:23-cv-00205 (W.D. Tex. Nov. 17, 2023).Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004). 3.
- Jean Lafitte Condo., LLC v. Certain Underwriters at Lloyd's, London, No. 2:23-cv-03415 (E.D. La. Nov. 14, 2023).La. Dec. 14, 2020) (quoting Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 297 (5th Cir. 2004)); see also Freudensprung, 379 F.3d at 341 (“Under the FAA, a written arbitration agreement is prima facie valid and must be enforced u…
- StoneX Commodity Solutions, LLC fka FCStone Merch. Servs., LLC v. Garcia, No. 7:23-cv-00163 (S.D. Tex. Nov. 6, 2023).Substantial invocation occurs when a party performs an overt act in court that evinces a desire to resolve the arbitrable dispute through litigation rather than arbitration.”21 Prejudice, in this context, “refers to inherent unfairness—in…
- Iberia Credit Bureau, Inc. v. Cingular Wireless LLC, 379 F.3d 159 (5th Cir. 2004).published
- Lim v. Offshore Specialty Fabricators, Inc., 404 F.3d 898 (5th Cir. 2005).published
- Charles Grant v. Kevin Houser, 469 F. App'x 310 (5th Cir. 2012).unpublished
- In Re Weeks Marine, Inc., 242 S.W.3d 849 (Tex. App.—Houston [14th Dist.] 2007).published
- In Re Winstar Commc'ns, Inc., 335 B.R. 556 (Bankr. D. Del. 2005).published
- D'ANTUONO v. Serv. Road Corp., 789 F. Supp. 2d 308 (D. Conn. 2011).published
- Quilloin v. Tenet Healthsystem Philadelphia, Inc., 763 F. Supp. 2d 707 (E.D. Pa. 2011).published
- in Re: Weeks Marine, Inc., No. 14-07-00501-CV (Tex. App.—Houston [14th Dist.] Dec. 19, 2007).published
- W. Dairy Transp., LLC v. Vasquez, 457 S.W.3d 458 (Tex. App.—El Paso 2014).published
- In Re W. Dairy Transp., LLC, Relator, 457 S.W.3d 467 (Tex. App.—El Paso 2014).published
- Chris Cardoni v. Prosperity Bank, 805 F.3d 573 (5th Cir. 2015).published
- Raymond Richardson v. Wells Fargo Bank, N.A, 839 F.3d 442 (5th Cir. 2016).published
- Brady v. Williams Capital Grp., L.P., 64 A.D.3d 127 (N.Y. App. Div. 1st Dep't 2009).published
- Micheletti v. Uber Tech., Inc., 213 F. Supp. 3d 839 (W.D. Tex. 2016).published
- Shubert v. Wellspring Media, Inc., 335 B.R. 556 (Bankr. D. Del. 2005).published
- Raniere v. Citigroup Inc., 827 F. Supp. 2d 294 (S.D.N.Y. 2011).published
- Killion v. KeHE Distributors, 885 F. Supp. 2d 874 (N.D. Ohio 2012).published
- Vallejo v. Garda CL Sw., Inc., 948 F. Supp. 2d 720 (S.D. Tex. 2013).published
- 1010 Common, LLC v. Certain Underwriters at Lloyd's, London, No. 2:20-cv-02326, 2020 WL 7342752 (E.D. La. Dec. 14, 2020).
- Kikuchi v. Silver Bourbon, Inc., No. 2:20-cv-02764 (E.D. La. June 1, 2021).
- Ortiguerra v. Grand Isle Shipyard, LLC, 630 F. Supp. 3d 793 (E.D. La. 2022).published
- Kronlage Fam. Ltd. P'ship v. Indep. Specialty Ins. Co., No. 2:22-cv-01013, 2023 WL 246847 (E.D. La. Jan. 18, 2023).
- Ten G, LLC v. Certain Underwriters at Lloyd's London, No. 2:22-cv-04426, 2023 WL 4744170 (E.D. La. July 25, 2023).
- Action Indus., Inc. v. Innophos, Inc., No. 3:19-cv-00509 (M.D. La. June 3, 2020).
- Poydras v. Iberia Bank Corp, No. 6:19-cv-01171 (W.D. La. Nov. 7, 2019).
- Banks v. Waitr Holdings Inc, No. 2:19-cv-00898 (W.D. La. Dec. 17, 2019).
- Sewell v. Waitr Holdings Inc, No. 2:19-cv-00698, 2020 WL 208929 (W.D. La. Jan. 13, 2020).
- Mathews v. Dallas Ass'n of Credit Mgmt. Inc, No. 5:19-cv-00210 (W.D. La. Feb. 19, 2020).
- People Source Staffing Professionals L L C v. Robertson, No. 3:19-cv-00430 (W.D. La. Mar. 19, 2020).
- Boxley v. Fam. Dollar Stores Inc, No. 5:19-cv-00568 (W.D. La. May 1, 2020).
- Wheeler v. Plano Arbor Hills, No. 4:20-cv-00603 (E.D. Tex. Nov. 18, 2020).
- Miller v. Ewing Buick-Plano, LP dba Ewing Buick GMC, No. 4:20-cv-00606 (E.D. Tex. Apr. 20, 2021).
- JLR Global, LLC v. PayPal Holding Co., No. 4:22-cv-00559 (E.D. Tex. Mar. 15, 2023).
- Hunter v. Baylor Health Care Sys., No. 3:18-cv-00881 (N.D. Tex. July 9, 2019).
- Clark v. Nordstrom Inc, No. 3:18-cv-02100, 2019 WL 3428947 (N.D. Tex. July 30, 2019).
- L2 Wireless v. Sprint Solutions Inc, No. 3:18-cv-02729 (N.D. Tex. Aug. 22, 2019).
- Norred v. Cotton Patch Cafe LLC, No. 3:19-cv-01010 (N.D. Tex. Oct. 22, 2019).
- Kalenga v. Irving Holdings Inc, No. 3:19-cv-01969 (N.D. Tex. Dec. 20, 2020).
- Predmore v. Nicks Clubs Inc, No. 3:20-cv-00513 (N.D. Tex. Feb. 4, 2021).
- Espinoza v. CareerStaff Unlimited Inc, No. 3:21-cv-00878 (N.D. Tex. Feb. 2, 2022).
- Forby v. One Tech. LP, 616 F. Supp. 3d 588 (N.D. Tex. 2022).published
- Signal Ridge Owners Ass'n Inc v. Landmark Am. Ins. Co., No. 3:22-cv-01385, 2023 WL 2090994 (N.D. Tex. Feb. 17, 2023).
- Spirit of Giving Org. v. Boss Exotics LLC, No. 3:21-cv-01316 (N.D. Tex. Jan. 31, 2023).
- Seifert v. United Built Homes LLC, 684 F. Supp. 3d 555 (N.D. Tex. 2023).published
- Avalos v. Freemyer Indus. Pressure, LP, No. 4:23-cv-00583 (N.D. Tex. Oct. 18, 2023).
- LaRue v. Collateral Recovery Team LLC, No. 4:19-cv-01039 (S.D. Tex. Oct. 25, 2019).
- Orozco v. JP Morgan Chase Bank, N.A., No. 4:20-cv-01961 (S.D. Tex. Oct. 13, 2020).
- Ferguson v. Weatherford Lamb, Inc., No. 4:19-cv-02086 (S.D. Tex. Nov. 30, 2020).
- Mahasivam v. Am. Int'l Grp., Inc, No. 3:20-cv-00386 (S.D. Tex. Oct. 7, 2021).
- Black v. Trust Bank, No. 4:21-cv-04231 (S.D. Tex. Mar. 17, 2022).
- Flynn v. Sanchez Oil & Gas Corp., No. 5:19-cv-00867, 2019 WL 6606530 (W.D. Tex. Dec. 5, 2019).
- Stamper v. Bluebonnet Trails Cmty. Servs., No. 1:19-cv-00749 (W.D. Tex. Jan. 30, 2020).
- Walker v. Neutron Holdings, Inc., No. 1:19-cv-00574, 2020 WL 703268 (W.D. Tex. Feb. 11, 2020).
- Com. Flooring Sys., Inc. v. Hunt Constr. Grp., Inc., No. 1:19-cv-01012 (W.D. Tex. Mar. 30, 2020).
- Noble Capital Grp., LLC v. US Capital Partners, Inc., No. 1:19-cv-01255 (W.D. Tex. May 12, 2020).
- Raul Solis, III v. Crescent Drilling & Prod., Inc., No. 5:19-cv-01194-FB (W.D. Tex. Mar. 1, 2021).
- Carnegie Tech., LLC v. Triller, Inc., No. 5:20-cv-00271 (W.D. Tex. Mar. 5, 2021).
- Roberson v. Experian Info. Solutions, Inc., No. 5:21-cv-00316 (W.D. Tex. Jan. 5, 2022).
- Burstein v. AutoLotto, Inc., No. 1:21-cv-00793 (W.D. Tex. Apr. 26, 2022).
- Broussard v. Finwise Bank, Inc., No. 5:21-cv-01238 (W.D. Tex. May 12, 2022).
- Cyphers v. Camino Real Cmty. Servs., No. 5:22-cv-00357 (W.D. Tex. Aug. 24, 2022).
- Lynch v. Tesla, Inc., No. 1:22-cv-00597 (W.D. Tex. Sept. 26, 2022).
- Michael v. Opportunity Fin., LLC, No. 1:22-cv-00529 (W.D. Tex. Oct. 24, 2022).
- Clearwater Benefits, LLC v. Planstin Admin., Inc., No. 1:22-cv-00802 (W.D. Tex. Jan. 9, 2023).
- Stephenson v. Rackspace Tech., Inc, No. 5:22-cv-01296 (W.D. Tex. May 18, 2023).
- Stirnweis v. Capital One Servs., LLC, No. 3:19-cv-00637 (E.D. Va. June 8, 2020).
- Hutchens v. Capital One Servs., LLC, No. 3:19-cv-00546, 2020 WL 3053657 (E.D. Va. June 8, 2020).
- Grigg v. McKey, No. 4:23-cv-00624 (E.D. Tex. Aug. 16, 2024).
- Alexander v. Experian Info. Solutions, Inc., No. 4:24-cv-00093 (E.D. Tex. July 3, 2025).
- Fortis Advisors, LLC v. Atos IT Solutions & Servs. Inc., No. 4:24-cv-00186 (E.D. Tex. Aug. 7, 2025).
- John A. Mansour v. Morgan Stanley, No. 4:24-cv-00459, 2025 WL 2380456 (E.D. Tex. Aug. 15, 2025).
- Case transferred to the S. Dist. of New YorkJohn A. Mansour v. Morgan Stanley, No. 4:25-cv-01000 (E.D. Tex. Aug. 15, 2025).
- Purl v. Caremark, LLC, No. 4:24-cv-01075 (E.D. Tex. Oct. 6, 2025).
- Doggins, No. 4:25-cv-00327 (E.D. Tex. Nov. 24, 2025).
- Poole-Ward v. Affiliates for Women's Health, P.A., 283 F. Supp. 3d 595 (S.D. Tex. 2017).published
At page 298 Reject claim that arbitration deprives employees of substantive rights48 citing cases[W]e reject the [plaintiffs’] claim that their inability to proceed collectively [in arbitration] deprives them of substantive rights available under the [Fair Labor Standards Act.] The Supreme Court rejected similar arguments 23 concerning the ADEA in Gilmer . . . .
- Barnett v. Concentrix Solutions Corp., No. 2:22-cv-00266 (D. Ariz. Dec. 7, 2022).([W]e reject the [appellants’] claim that 25 their inability to proceed collectively deprives them of substantive rights available under the FLSA.)
- In Re Am. Express Merchants'Litig., 554 F.3d 300 (2d Cir. 2009).published([W]e reject the [plaintiffs’] claim that their inability to proceed collectively [in arbitration] deprives them of substantive rights available under the [Fair Labor Standards Act.] The Supreme Court rejected similar a…)
- Joseph L. Smith, Raushanah Smith, & Erick Williams individually & on behalf of all others similarly situated v. Associated Couriers, LLC & Matthew Silverberg, No. 4:25-cv-01224 (E.D. Mo. Mar. 5, 2026).(rejecting claim that plaintiffs had been deprived of a substantive right to proceed collectively under the FLSA)
- Warden v. Pilot Catastrophe Servs. Inc, No. 3:24-cv-02156 (N.D. Tex. Dec. 4, 2024). Carter, 362 F.3d at 298 (citations omitted); see also D.R.
- Phillips v. Riverside Transp., Inc., No. 2:23-cv-02440 (D. Kan. July 12, 2024).For example, the Fifth Circuit rejected the claim that the right to participate in a collective action under the FLSA was a substantive right, and thus, found that it was waivable.13 Additionally, the Fourth and Eleventh Circuits found tha…
- Roig v. Alder Holdings LLC, No. 2:23-cv-00721 (D. Utah Feb. 16, 2024).(rejecting claim that plaintiffs had been deprived of a substantive right to proceed collectively under the FLSA)
- Iberia Credit Bureau, Inc. v. Cingular Wireless LLC, 379 F.3d 159 (5th Cir. 2004).published
- Quilloin v. Tenet Healthsystem Philadelphia, Inc., 763 F. Supp. 2d 707 (E.D. Pa. 2011).published
- Garrett v. Circuit City Stores, Inc., 449 F.3d 672 (5th Cir. 2006).published
- Skirchak v. Dynamics Rsch. Corp., 508 F.3d 49 (1st Cir. 2007).published
Show 34 more citing cases
- In Re Am. Exp. Merchants'Litig., 667 F.3d 204 (2d Cir. 2011).published
- Sharon Owen v. Bristol Care, Inc., 702 F.3d 1050 (8th Cir. 2013).published
- Sutherland v. Ernst & Young LLP, 726 F.3d 290 (2d Cir. 2013).published
- Homa v. Am. Express Co., 496 F. Supp. 2d 440 (D.N.J. 2007).published
- Ostroff v. Alterra Healthcare Corp., 433 F. Supp. 2d 538 (E.D. Pa. 2006).published
- Perez v. Lemarroy, 592 F. Supp. 2d 924 (S.D. Tex. 2008).published
- Scott v. Cingular Wireless, 161 P.3d 1000 (Wash. 2007).published
- D.R. Horton, Inc. v. Nat'l Labor Relations Bd., 737 F.3d 344 (5th Cir. 2013).published
- D.R. Horton, Inc. v. NLRB, No. 12-60031 (5th Cir. Dec. 4, 2013).published
- D.R. Horton, Inc. v. NLRB, No. 12-60031 (5th Cir. Jan. 20, 2014).published
- Ashley Walthour v. Chipio Windshield Repair, LLC, 745 F.3d 1326 (11th Cir. 2014).published
- Thomas Killion v. KeHE Distributors, 761 F.3d 574 (6th Cir. 2014).published
- Nat'l Labor Relations Bd. v. Alt. Ent., Inc., 858 F.3d 393 (6th Cir. 2017).published
- Convergys Corp. v. Nat'l Labor Relations Bd., 866 F.3d 635 (5th Cir. 2017).published
- Convergys Corp. v. NLRB, No. 15-60860 (5th Cir. Aug. 8, 2017).published
- Pamela Herrington v. Waterstone Mortg. Corporatio, No. 17-3609 (7th Cir. Oct. 22, 2018).published
- Int'l Bancshares Corp v. Lopez, 57 F. Supp. 3d 784 (S.D. Tex. 2014).published
- Totten v. Kellogg Brown & Root, LLC, 152 F. Supp. 3d 1243 (C.D. Cal. 2016).published
- Fozard v. C.R. England, Inc., 243 F. Supp. 3d 789 (N.D. Tex. 2017).published
- McGrew v. VCG Holding Corp., 244 F. Supp. 3d 580 (W.D. Ky. 2017).published
- Italian Colors Restaurant v. Am. Express Travel Related Servs. Co., 634 F.3d 187 (2d Cir. 2011).published
- Copello v. Boehringer Ingelheim Pharm. Inc., 812 F. Supp. 2d 886 (N.D. Ill. 2011).published
- Delock v. Securitas Sec. Servs. USA, Inc., 883 F. Supp. 2d 784 (E.D. Ark. 2012).published
- Long v. BDP Int'l, Inc., 919 F. Supp. 2d 832 (S.D. Tex. 2013).published
- Torres v. United Healthcare Servs., Inc., 920 F. Supp. 2d 368 (E.D.N.Y 2013).published
- Walthour v. Chipio Windshield Repair, LLC, 944 F. Supp. 2d 1267 (N.D. Ga. 2013).published
- Dixon v. NBCUniversal Media, LLC, 947 F. Supp. 2d 390 (S.D.N.Y. 2013).published
- Mazurkiewicz v. Clayton Homes, Inc., 971 F. Supp. 2d 682 (S.D. Tex. 2013).published
- Greenhill v. RV World, LLC, 727 F. Supp. 3d 798 (S.D. Ill. 2024).published
- Reed v. Royal Sonesta, Inc., No. 2:20-cv-00384, 2020 WL 3545392 (E.D. La. June 30, 2020).
- Lusk v. Serve U Brands, Inc., No. 6:17-cv-06451 (W.D.N.Y. Sept. 16, 2019).
- Layton v. Mainstage Mgmt. Inc, No. 3:21-cv-01636 (N.D. Tex. Oct. 18, 2022).
- Galvez v. Arandas Bakery No. 3, Inc., No. 4:22-cv-00712 (S.D. Tex. Mar. 24, 2023).
- Williams v. EMTB, LLC, No. 8:24-cv-01603 (M.D. Fla. Feb. 20, 2025).
At page 301 Determining arbitration agreement validity under state law25 citing cases“in determining the contractual validity of an arbitration agreement, courts apply ordinary state-law principles that govern the formation of contracts.”
- Jones v. Halliburton Co., 625 F. Supp. 2d 339 (S.D. Tex. 2008).published (In Texas, there is nothing per se unconscionable about arbitration agreements; indeed, parties claiming unconscionability bear the burden of demonstrating it.)
- Backgroundchecks.com, No. 26-03035 (Bankr. N.D. Tex. Sept. 4, 2026).Tex. 2025), (citing Carter v. Countrywide Credit Indus., Inc., 362 F.3d 294, 301 (5th Cir. 2004)). 49 See In re Palm Harbor Homes, Inc., 195 S.W.3d 672, 679 (Tex. 2006). 50 Ashby, 2025 LEXIS 459914 at *9 (citing Carrillo v. ROICOM USA, LLC…
- Brown, No. 2:25-cv-00028 (N.D. Tex. Dec. 16, 2025).“In determining the contractual validity of an arbitration agreement, courts apply ordinary state-law principles that govern the formation of contracts”
- Hernandez v. FVE Managers, Inc., No. 4:23-cv-04592 (S.D. Tex. Aug. 27, 2024).“In determining the contractual validity of an arbitration agreement, courts apply ordinary state-law principles that govern the formation of contracts”
- Rummage v. Bluegreen Vacations Unlimited, Inc., No. 4:23-cv-00962 (E.D. Tex. Aug. 26, 2024). “Under Texas law, unconscionability includes two aspects: (1) procedural unconscionability, which refers to the circumstances surrounding the adoption of the arbitration provision, and (2) substantive unconscionability, which refers to the…
- Lewis v. Circle K Stores, Inc., No. 4:23-cv-01446 (S.D. Tex. Oct. 3, 2023).“In determining the contractual validity of an arbitration agreement, courts apply ordinary state-law principles that govern the formation of contracts”
- Micheletti v. Uber Tech., Inc., 213 F. Supp. 3d 839 (W.D. Tex. 2016).published
- Kalenga v. Irving Holdings Inc, No. 3:19-cv-01969 (N.D. Tex. Dec. 20, 2020).
- Fozard v. C.R. England, Inc., 243 F. Supp. 3d 789 (N.D. Tex. 2017).published
- Kee v. Mariner Health Care Mgmt. Co., 149 F. App'x 314 (5th Cir. 2005).unpublished
Show 13 more citing cases
- In Re Frank Kent Motor Co., 336 S.W.3d 374 (Tex. App.—Fort Worth 2011).published
- Hollins v. Debt Relief of Am., 479 F. Supp. 2d 1099 (D. Neb. 2007).published
- Edwards v. Blockbuster Inc., 400 F. Supp. 2d 1305 (E.D. Okla. 2005).published
- Gipson v. Cross Country Bank, 354 F. Supp. 2d 1278 (M.D. Ala. 2005).published
- In Re Frank Kent Motor Co., 361 S.W.3d 628 (Tex. 2012).published
- Metso Minerals Indus., Inc. v. Maverick Aggregates, Inc., No. 04-15-00532-CV (Tex. App.—San Antonio Sept. 8, 2015).published
- Meadows v. Dickey's Barbecue Restaurants Inc., 144 F. Supp. 3d 1069 (N.D. Cal. 2015).published
- In re Online Travel Co. (OTC), 953 F. Supp. 2d 713 (N.D. Tex. 2013).published
- Price v. Santander Consum. USA Inc, No. 3:19-cv-00742 (N.D. Tex. Sept. 12, 2019).
- Hurley v. EB Safe LLC, No. 3:19-cv-00011 (N.D. Tex. Oct. 25, 2019).
- Forby v. One Tech. LP, No. 3:16-cv-00856 (N.D. Tex. Jan. 13, 2020).
- Amerigas USA LLC v. Stand. Capital SA Inc, No. 3:21-cv-00072 (N.D. Tex. Nov. 1, 2021).
- Dow v. Keller Williams Realty Inc, No. 4:21-cv-01209 (N.D. Tex. Sept. 2, 2022).
At page 300 Mooting prohibitive cost arguments in arbitration9 citing casesplaintiff’s prohibitive-cost argument was mooted by defendant’s representation to the district court that it would pay all arbitration costs
- JLR Global, LLC v. PayPal Holding Co., No. 4:22-cv-00559 (E.D. Tex. Sept. 13, 2024). “some individualized evidence that they likely will face prohibitive costs in the arbitration at issue and that they are financially incapable of meeting those costs”
- D'ANTUONO v. Serv. Road Corp., 789 F. Supp. 2d 308 (D. Conn. 2011).published
- Holsapple v. Doggett Equip. Servs., Ltd, No. 3:20-cv-00296 (W.D. Tex. June 1, 2021).
- Joe Bell v. Koch Foods of Mississippi, LLC, 358 F. App'x 498 (5th Cir. 2009).unpublished
- Samuel Muriithi v. Shuttle Express, Inc., 712 F.3d 173 (4th Cir. 2013).published
- Rivera v. Thomas, 316 F. Supp. 2d 256 (D. Md. 2004).published
- Taylor Morrison of Texas, Inc. & Taylor Woodrow Communities-League City, Ltd. v. Jack Richard Skufca, Jr. Erin Skufca, Individually & A/N/F of KSX Minor Child 1 & KSXX Minor Child 2, No. 01-20-00638-CV (Tex. App.—Houston [1st Dist.] Dec. 30, 2021).published
- Sitzman v. EK Real Est. Servs. of NY LLC, No. 3:21-cv-02666 (N.D. Tex. Dec. 21, 2022).
- Chlarson v. EK Real Est. Servs. of NY, LLC, No. 5:21-cv-01046 (W.D. Tex. July 1, 2022).
At page 299 Arbitrator's discretion regarding attorneys' fees and forum selection clauses8 citing cases“is prima facie valid and enforceable unless the opposing party shows that enforcement would be unreasonable”
- Derrick Justin Mitchell v. Trans Papa Logistics, et al., No. 4:25-cv-00453 (N.D. Tex. Oct. 1, 2025).“is prima facie valid and enforceable unless the opposing party shows that enforcement would be unreasonable”
- Raniere v. Citigroup Inc., 827 F. Supp. 2d 294 (S.D.N.Y. 2011).published
- Dominguez v. Finish Line, Inc., 439 F. Supp. 2d 688 (W.D. Tex. 2006).published
- Valero Mktg. & Supply Co. v. Gen. Energy Corp., 702 F. Supp. 2d 706 (S.D. Tex. 2010).published
- Goodman Co., Lp v. A & H Supply, Inc., 396 F. Supp. 2d 766 (S.D. Tex. 2005).published
- Chen v. Kyoto Sushi, Inc., No. 2:15-cv-07398 (E.D.N.Y Apr. 1, 2021).
- Baldwin v. Lacayo Beeche, No. 4:20-cv-00639 (E.D. Tex. Apr. 12, 2021).
- Holsapple v. Doggett Equip. Servs., Ltd, No. 3:20-cv-00296 (W.D. Tex. June 1, 2021).
v.
COUNTRYWIDE CREDIT INDUSTRIES, INC.; Countrywide Home Loans, Inc.; Full Spectrum Lending, Inc., Defendants-Appellees
Appellees Countrywide Credit Industries, Inc., Countrywide Home Loans, Inc., and Full Spectrum Lending, Inc. (“Countrywide”) are in the business of selling and servicing consumer mortgage loans. Appellants Loy Carter, Geoff Burkhart, Heather Young, and Deborah Robinson (“Carter Appellants”) are current and former employees of Countrywide who brought suit against Countrywide on behalf of themselves and others similarly situated in an attempt to recover overtime compensation allegedly due under the provisions of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201. Following the filing of this suit, Countrywide moved to compel the plaintiffs to submit their claims to arbitration under arbitration agreements (“the Arbitration Agreements”), which all Countrywide employees sign as a condition of their employment with the company.
In response, the Carter Appellants admitted that they signed the Arbitration Agreements. However, they asserted that the Agreements were invalid and thus unenforceable for four primary reasons: (1) FLSA claims are not subject to arbitration; (2) the Agreements are unconscionable; (3) the Agreements infringe on substantive rights otherwise granted by the FLSA; and (4) the fee splitting arrangement contained in the Agreements imposes impermissibly prohibitive arbitration costs on them.
The district court rejected the first three arguments entirely, holding that the Agreements were not unconscionable nor would their enforcement clash with any substantive provisions of the FLSA. The district court did hold, however, that the Agreements’ fee-splitting provision • imposed prohibitive costs on the Carter Appellants; in this respect, the district court simply severed this provision from the Agreements under the severability clause, and ordered Countrywide to pay all costs associated with arbitration. The district court then granted Countrywide’s motion to compel arbitration.
The' Carter Appellants appealed. On appeal, they reassert their earlier objections to the validity and enforceability of[*297] the Arbitration Agreements here. They also contend that although the district court correctly concluded the fee-splitting provision was unenforceable, it nevertheless erred by merely severing that provision as opposed to invalidating the Agreements entirely. For the reasons below, we disagree and AFFIRM the judgment compelling arbitration.
I
The Federal Arbitration Act (“FAA”) provides that pre-dispute arbitration agreements “shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” 9 U.S.C. § 2. The Supreme Court has noted that the purpose of the FAA is “‘to reverse the longstanding judicial hostility to arbitration agreements ... and to place [them] upon the same footing as other contracts.’ ” Green Tree Fin. Corp.-Ala. v. Randolph, 531 U.S. 79, 89, 121 S.Ct. 513, 148 L.Ed.2d 373 (2000) (quoting Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 24, 111 S.Ct. 1647, 114 L.Ed.2d 26 (1991)). Accordingly, there is a strong presumption in favor of arbitration and a party seeking to invalidate an arbitration agreement bears the burden of establishing its invalidity. Gilmer, 500 U.S. at 26, 111 S.Ct. 1647. We review the denial of a motion to compel arbitration de novo. Hadnot v. Bay, Ltd., 344 F.3d 474, 476 (5th Cir.2003).
II
The Carter Appellants first argue that the Arbitration Agreements are unenforceable because FLSA claims are not subject to arbitration. They contend that the FLSA grants them access to a judicial forum and that this grant cannot be waived by an agreement to arbitration. For authority, they cite the Supreme Court case of Barrentine v. Arkansas-Best Freight System, Inc., 450 U.S. 728, 101 S.Ct. 1437, 67 L.Ed.2d 641 (1981). We cannot agree.
We have already noted that individuals seeking to avoid the enforcement of an arbitration agreement face a high bar. This bar is high even where, as here, the claims subject to arbitration are statutory in nature. Under Gilmer, a court is required to enforce a party’s commitment to arbitrate his federal statutory claims unless he can show that Congress intended to preclude arbitration or other nonjudicial resolution of those claims. 500 U.S. at 26, 111 S.Ct. 1647. This showing is made by reference to “the text of the [statute], its legislative history, or an inherent conflict between arbitration and the [statute’s] underlying purposes.” Id. (internal quotations removed). In weighing such an argument, a court should keep centrally in mind “that questions of arbitrability must be addressed with a healthy regard for the federal policy favoring arbitration.” Id. (internal quotations removed). Perhaps indicative of the difficulty of making such a showing, the Supreme Court has seldom found congressional intent to preclude the arbitration of any particular statutory claim.
The Carter Appellants assert here that the text and legislative history of the FLSA explicitly preclude arbitration. As the district court noted, however, there is nothing in the FLSA’s text or legislative history supporting this assertion. Indeed, like the district court, we find nothing that would even implicitly have that effect. This fact has been recognized by the other two circuit courts that have addressed this issue. See Kuehner v. Dickinson & Co., 84 F.3d 316, 319-20 (9th Cir.1996) (finding no evidence that Congress intended to preclude arbitration of FLSA claims in the[*298] text or legislative history of the statute); Adkins v. Labor Ready, Inc., 303 F.3d 496, 506 (4th Cir.2002) (holding that FLSA claims are arbitrable).
Undaunted, the Carter Appellants cite Barrentine and its Fifth Circuit progeny, Bernard v. IBP, Inc. of Nebraska, 154 F.3d 259 (5th Cir.1998), for the proposition that FLSA claims are not subject to arbitration. However, neither of these cases support the Carter Appellants. Significantly, Barrentine and Bernard involved arbitration agreements embedded in collective-bargaining agreements, not individually executed pre-dispute arbitration agreements like the ones at issue here. This difference is not insignificant; the Supreme Court explicitly distinguished between these two types of arbitration agreements in Gilmer, ultimately concluding that the former may not be subject to arbitration while the latter are. In addition, as the Supreme Court noted in Gil-mer, Barrentine took place during a period of judicial skepticism concerning the efficacy of arbitral forums. By the time of Gilmer, however, the “mistrust of the arbi-tral process” expressed by Barrentine-^ra cases had been “undermined by [the Supreme Court’s] recent arbitration decisions.” Gilmer, 500 U.S. at 34 n. 5, 111 S.Ct. 1647. Similar conclusions concerning the inapplicability of Barrentine to this case were reached by our sister circuits in Kuehner, 84 F.3d at 320, and Adkins, 303 F.3d at 506. We thus find unpersuasive the Carter Appellants’ contention that FLSA claims are not subject to arbitration.
Ill
The Carter Appellants also argue that the Arbitration Agreements here are invalid because they deprive them of substantive rights guaranteed by the FLSA. Specifically, they contend that the Agreements interfere with their right under the FLSA to proceed collectively, collect attorney fees, select their forum, and engage in appropriate discovery. We find no such interference that will preclude the enforcement of these agreements.
First, we reject the Carter Appellants’ claim that their inability to proceed collectively deprives them of substantive rights available under the FLSA. The Supreme Court rejected similar arguments concerning the ADEA in Gilmer, despite the fact that the ADEA, like the FLSA, explicitly provides for class action suits. 500 U.S. at 32, 111 S.Ct. 1647. What is more, the provision for class actions in the ADEA is the FLSA class action provision, which the ADEA expressly adopts. 29 U.S.C. § 626(b). Accordingly, Gilmer’s conclusion in this respect applies with equal force to FLSA claims.
Similarly, we reject the Carter Appellants’ assertion that the Arbitration Agreements’ limits on discovery deprive them of substantive FLSA rights. Once again, the Supreme Court considered and rejected a similar argument in Gilmer. Id. at 31, 111 S.Ct. 1647. There, the Court noted that the mere fact that discovery in arbitration proceedings “might not be as extensive as in federal courts” does not render those agreements invalid; by agreeing to arbitrate, a party simply “trades the procedures and opportunity for review of the courtroom for the simplicity, informality, and expedition of arbitration.” Id. Thus, a party seeking to have an arbitration agreement invalidated on this basis must show that the discovery provisions in question “will prove insufficient to allow [FSLA] claimants ... a fair opportunity to present their claims.” Id. We agree with the district court’s conclusion that there is no evidence here that the limits placed on discovery will have such[*299] an effect on the Carter Appellants’ individual cases.
We also conclude that the Arbitration Agreements’ failure to explicitly mandate that the arbitrator grant attorneys’ fees to prevailing parties is not a basis for invalidating the Agreements. Although Paragraph 8 of the Agreements states that “[e]ach party shall pay for each party’s own costs and attorneys’ fees,” Paragraph 2 states that the arbitration “shall be adjudicated in accordance with the state or federal law which would be applied by a United States District Court sitting at the place of hearing.” Therefore, if the Carter Appellants prevail on their FLSA claims at arbitration, and thereby become entitled to attorneys’ fees under the statute, the arbitrator would be required by the Agreements to grant the fees. Indeed, Paragraph 8 concedes this fact as it goes on to state that “the arbitrator may, in his or her discretion, permit the prevailing party to recover fees and costs only to the extent permitted by applicable law.” [1] Accordingly, the Agreements do not deny the Carter Appellants their ability to recover attorneys’ fees if they prevail.
Finally, we cannot agree with the Carter Appellants’ assertion that the presence of a forum selection clause in the Arbitration Agreements prevents them from vindicating their substantive FLSA rights. The clause at issue states as follows, in relevant part:
[Ajrbitration hearings covered by this Agreement are to be held within the Federal Judicial District in which Employee was last employed with the Company.
This court has previously stated that a “forum selection provision in a written contract is prima facie valid and enforceable unless the opposing party shows that enforcement would be unreasonable.” Kevlin Services, Inc. v. Lexington State Bank, 46 F.3d 13, 15 (5th Cir.1995). Though Kevlin Services involved a forum selection provision in a contract that did not contain an arbitration agreement, we think the same burden on the objecting party of demonstrating unreasonableness should apply here.
The forum selection provision is not, on its face, unreasonable. Had the Carter Appellants been able to provide evidence that application of the forum selection provision placed an unreasonable burden on any of them individually, the provision might not have been enforceable. However, and significantly, they have not done so. [2] Three of the four Carter Appellants reside in the same area where they were employed; and while the fourth has moved to another judicial district, arbitrating in the forum required by the Agree[*300] ments would be closer to where she now lives than to the judicial district where the Carter Appellants initially filed this case. Accordingly, we do not think the forum selection clause here works to prevent any of the Carter Appellants from vindicating any of their statutory rights.
IV
The Carter Appellants next argue that the “Fee and Costs” provision in the Arbitration Agreements imposes excessive and prohibitive costs on them and, as such, renders the Agreements unenforceable under Green Tree, 531 U.S. at 90, 121 S.Ct. 513. In Green Tree, the Supreme Court noted that prohibitive arbitration costs may hamper an employee’s ability to bring her statutory claims in arbitration, effectively preventing the employee from vindicating her statutory rights. Id. The district court agreed with the Carter Appellants’ contention that the Agreements would impose prohibitive costs on them; however, the court refused to invalidate the Agreements on that basis. Instead, the district court simply severed the offending provision under the the Agreements’ severability clause and ordered Countrywide to pay all arbitration costs. The Carter Appellants argue that this was error — that instead of severing the provision, the district court should have invalidated the Agreements in their entirety.
We need not reach this argument, however, because the Carter Appellants’ prohibitive costs argument has been mooted by Countrywide’s representation to the district court that it would pay all arbitration costs. In October 2000, nearly a year prior to the beginning of this litigation, Countrywide sent a Memorandum to all of its employees revising the “Fee and Costs” provision of the Arbitration Agreements. So revised, the new provision only required employees to pay a $125 filing fee, with Countrywide paying all other arbitration costs. In keeping with their obligations under this revision, Countrywide has already formally acknowledged that it would pay all the arbitration costs (excluding the $125 filing fee) of the Carter Appellants. Indeed, Countrywide has done just that for other plaintiffs who were originally part of this action but were later removed and elected to proceed to arbitration. Thus, it is impossible here for the Carter Appellants to carry their burden of “providing] some individualized evidence that [they] likely will face prohibitive costs in the arbitration at issue and that [they are] financially incapable of meeting those costs.” Livingston v. Associates Fin., Inc., 339 F.3d 553, 557 (7th Cir.2003). See also Bradford v. Rockwell Semiconductor Sys., Inc., 238 F.3d 549, 557 (4th Cir.2001). [3] Accordingly, the issue of arbitration costs is moot in this case. [4]
[*301] V
The Carter Appellants also contend that the Arbitration Agreements should be invalidated on the grounds that they are unconscionable. They concede that there is not one particular aspect of the Agreements that renders them unconscionable, but assert that the combined weight of all their allegedly onerous elements renders them so. Their list of onerous elements includes those provisions that they argue infringe on their substantive FLSA rigid® — -lack of ability to proceed collectively, limited discovery, and the forum selection clause — as well as the Agreements’ fee-splitting arrangement and what they claim is Countrywide’s abuse of its superior bargaining position.
In determining the contractual validity of an arbitration agreement, courts apply ordinary state-law principles that govern the formation of contracts. First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938, 944, 115 S.Ct. 1920, 131 L.Ed.2d 985 (1995). Accordingly, we look to Texas state law to determine whether the arbitration agreements here are unconscionable. Under Texas law, unconscionability includes two aspects: (1) procedural unconscionability, which refers to the circumstances surrounding the adoption of the arbitration provision, and (2) substantive unconscionability, which refers to the fairness of the arbitration provision itself. In re Halliburton Co., 80 S.W.3d 566, 571 (Tex.2002). The burden of proving unconscionability rests on the party seeking to invalidate the' arbitration agreement. Id. at 572. We find that the Carter Appellants simply cannot carry this burden here.
The Carter Appellants argue that the Agreements are procedurally unconscionable under Texas law because Countrywide used its superior bargaining position to coerce potential employees; that is, employees feared that they would not get the job unless they signed. This argument, however, has no support in Texas law. Indeed, the Texas Supreme Court specifically rejected such an argument in Halliburton. There, the court held that “an employer may make precisely such a ‘take it or leave it’ offer to its at-will employees.” Id. The court reasoned that “[b]ecause an employer has a general right under Texas law to discharge an at-will employee, it cannot be unconscionable, without more, merely to premise continued employment on acceptance of new or additional employment terms.” Id.
The Carter Appellants also argue that the Agreements’ terms are substantively unconscionable because their terms are so one-sided and unfair. We have already rejected the essence of this argument. We earlier noted that the Arbitration Agreements’ discovery, party joinder and forum provisions are not unreasonable. We have also concluded that the fee-splitting arrangement is no longer an issue in this case as Countrywide has agreed to pay all such fees itself. Accordingly, we agree with the district court’s conclusion that the Arbitration Agreements here are not unconscionable. [5]
[*302] Conclusion
We find no basis that the Arbitration Agreements here are invalid. We therefore AFFIRM the district court’s judgment compelling arbitration.
AFFIRMED.
. The Agreements also provide a mechanism for having the failure to grant such fees reviewed. Paragraph 11 gives the parties the "right to appeal to the appropriate court any errors of law.” Given the fact that "judicial review of arbitral adjudication of federal statutory employment rights ... must be sufficient to ensure that arbitrators comply with the requirements of the statute at issue,” Williams v. Cigna Financial Advisors Inc., 197 F.3d 752, 761 (5th Cir.1999) (internal quotations omitted), it seems clear that if an arbitrator failed to award fees he or she should have under the statute, the Carter Appellants would have an effective remedy in federal court.
. In their brief, the Carter Appellants do provide the names of several mystery plaintiffs who would find the enforcement of the forum clauses unreasonable because they have moved away from the arbitral forum. However, leaving aside the fact that nothing about them or their current residences appears in the record, these hypothetical plaintiffs are not the parties before us today. Accordingly, whether the operation of the forum selection clause would be unreasonable as to them is irrelevant.
. The district court rejected this argument on the grounds that Countrywide’s unilateral revisions to the contract were invalid because it did not follow the procedures outlined in the Agreements for amending the Agreements. Although this observation may be accurate as a matter of contract law, what is at issue here is whether these plaintiffs will be required to pay prohibitive arbitration fees and costs if they are forced to proceed to arbitration. See Livingston, 339 F.3d at 557 n. 3. Countrywide’s formal position in this case completely forecloses this possibility.
. Several of our sister circuits have reached similar conclusions. See, e.g., Livingston, 339 F.3d at 557 (holding that the fact that the defendants agreed to pay all costs associated with arbitration "forecloses the possibility that the [plaintiffs] could endure any prohibitive costs in the arbitration process”); Large v. Conseco Fin. Serv. Corp., 292 F.3d 49, 56-57 (1st Cir.2002) (finding that the defendant's offer to pay the costs of arbitration "mooted the issue of arbitration costs”).
. In support of their contention that the Arbitration Agreements are unconscionable, the Carter Appellants rely heavily upon Ferguson v. Countrywide Credit Industries, Inc., 298 F.3d 778 (9th Cir.2002), a Ninth Circuit case affirming a district court's invalidation of an apparently identical arbitration agreement on unconscionability grounds.
This reliance on Ferguson is misguided, however, as the Ferguson court explicitly relied on California state law in determining that the arbitration agreement was unconscionable whereas here, both parties acknowledge that Texas law should apply. The Carter Appellants argue that this makes no salient difference because California law and Texas law regarding unconscionability are essential[*302] ly the same. As the district court noted, however, this is incorrect. In reality, California law and Texas law differ significantly, with the former being more hostile to the enforcement of arbitration agreements than the latter. This difference can be quickly observed by noting their respective threshold views of arbitration agreements. In Texas, there is nothing per se unconscionable about arbitration agreements; indeed, parties claiming un-conscionability bear the burden of demonstrating it. See, e.g., In re Oakwood Mobile Homes, Inc., 987 S.W.2d 571, 574 (Tex.1999). Conversely, in California, a contract to arbitrate between an employer and an employee raises a rebuttable presumption of substantive unconscionability. See, e.g., Ingle v. Circuit City Stores, Inc., 328 F.3d 1165, 1179 (9th Cir.2003) (applying California law). Given this dramatic difference between the two states' laws, Ferguson is hardly persuasive in applying Texas law.