Mississippi Supreme Court Rules Arbitration Requirement in External Document is Binding Where Mentioned, But Not Quoted, in Application For Service

For the second time this year, the Mississippi Supreme Court ruled the arbitration agreement in an electric cooperative’s (co-op) bylaws are enforceable in disputes with customers (who become members by becoming customers) because the bylaws are mentioned in the one-page application signed by members. The most recent case,  Delta Electric Power Assoc.  v. Campbell, 2020 WL 5627388 (Ms. Sept 3, 2020), mirrors that of Virgil v. Southwest Mississippi Electric Power Association, 296 So. 3d 53 (Miss. 2020). In both cases, customers sign an application and become a “member” in the cooperative in order to receive power from the electric co-op. The application refers to the charter and bylaws of the Corporation, which in turn compel arbitration. In both cases, co-op members filed suit against their respective electric cooperatives alleging the organizations retained excess revenues instead of returning them to the members. Read the full case here.