|
Reversing a trial court’s refusal to confirm an arbitration award, the Arkansas Court of Appeals held that a party who fails to timely challenge an arbitration award and participates in arbitration waives its right to seek vacatur on the ground that there was no arbitration agreement.
In MBNA America Bank, N.A. v. Gilbert, No. CA. 06-1324, 2007 WL 3171824 (Ark. Ct. App. Oct. 31, 2007), MBNA filed an arbitration claim against Gilbert for the unpaid balance on an MBNA credit card. The arbitrator awarded MBNA $10,816.95. MBNA filed a petition to confirm the award. In opposing the petition, Gilbert argued that he had not entered into an arbitration agreement with MBNA. The trial court denied confirmation.
On appeal, the Court held that a party who fails to timely challenge an award and participates in arbitration waives its right to seek vacatur of the award for the alleged nonexistence of an arbitration agreement. Under Section 12 of the Federal Arbitration Act, a motion challenging an arbitration award “must be served upon the adverse party or his attorney within three months after the award is filed or delivered.” Gilbert failed to challenge the award within ninety days and participated in the arbitration, thereby waiving his argument that he had not agreed to arbitrate disputes with MBNA.
Subscribe to a free weekly update on ADR case law and
legislation
|