Opinion handed down March 25, 2015
The issue at the heart of Torres is the enforceability of a compelled arbitration clause contained in a franchise agreement. After some franchisees joined together in a putative class action against their franchisers and other individuals associated with their franchise system, alleging violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), the franchisers attempted to assert the individual arbitration clauses in the franchisees’ contracts. The district court granted the franchisers’ motion to compel arbitration. The franchisees then appealed from the district court’s ruling, arguing that the arbitration clauses were unconscionable and unenforceable, but the Eighth Circuit affirmed the district court’s decision.