Posted by NCBRC - November 10th, 2015
Discharge of the credit card debts did not render the arbitration clause of the credit card agreement unenforceable and, where the clause was valid and not in conflict with the Code, the credit card companies’ motion to compel should have been granted. Belton v. GE Capital Consumer Lending Inc., No. 15-1934, consolidated with In re Bruce, No.15-3311 (S.D. N.Y. Oct. 14, 2015). Read More
Posted by NCBRC - March 19th, 2015
In a lengthy, per curiam opinion, the Fourth Circuit affirmed in part and reversed in part a district court decision declining to enforce CashCall’s notorious arbitration clause. Moses v. CashCall, No. 14-1195 (4th Cir. March 16, 2015). Read More
Posted by NCBRC - November 13th, 2014
The doctrine of collateral estoppel mandated that findings in a state court arbitration judgment applied to the determination of nondischargeability of a debt in chapter 7 bankruptcy. Margolis v. Hensley (In re Hensley), No. 12-42785, Adv. Pro. 12-4180 (Bankr. E.D. Tex. Oct. 1, 2014). Read More
Posted by NCBRC - October 17th, 2014
An arbitration clause is not enforceable when the specified forum is unavailable. So said the Eleventh Circuit Court of Appeals in Inetianbor v. CashCall, Inc., __ F.3d __, 2014 WL 4922225 (11th Cir. Oct. 2, 2014). Read More
Posted by NCBRC - September 20th, 2012
Finding, under the circumstances of the case, that the Federal Arbitration Act conflicts with the underlying purposes of the Bankruptcy Code, the Ninth Circuit upheld the denial of the creditor’s motion to compel arbitration where such arbitration would necessarily have resolved a core bankruptcy issue. In re Eber, No. 11-55341 (9th Cir. July 9, 2012). Read More
Posted by NCBRC - August 13th, 2012
The Ninth Circuit found that the creditor’s motion to compel arbitration was properly denied where arbitration would have resolved the core bankruptcy issue of dischargeability and, therefore, the Federal Arbitration Act conflicted with the underlying purposes of the Bankruptcy Code. In re Eber, No. 11-55341 (9th Cir. July 9, 2012). Specifically, the creditors sought arbitration to determine whether the debtor had committed fraud, breach of fiduciary duty, and willful injury, with respect to a contract for construction and operation of a hair salon. The bankruptcy court denied the motion on the basis that findings on these issues would essentially decide the issue of whether the debts were nondischargeable under sections 523(a)(2), (4) and (6) of the Bankruptcy Code. Read More