A Florida federal district court has rejected a cardholder's challenge to a motion to compel arbitration because he failed to present evidence that contract amendments were never received or that related, third-party litigation had prejudiced his interests.

In Krutchik v. Chase Bank USA, N.A., No. 07-61136-CIV-COHN/SELTZER, 2008 WL 194434 (S.D. Fla. Jan. 23, 2008), Krutchik filed a complaint alleging Chase had improperly denied his dispute of several allegedly fraudulent charges made by a third party on his credit card account. Chase moved to compel arbitration of the claim under an arbitration agreement previously added by a mailed amendment to the credit card contract.

Krutchik first claimed that he had received replacement credit cards and billing statements at his address, but had never received the mailed amendments to the contract, including those adding an arbitration agreement.

The Court found Krutchik's claim "to be lacking in credibility," and that affidavits established proper mailing and receipt of the amendments. The Court noted that Krutchik provided no evidence other than his denial that would overcome the presumption the amendments were received, especially in light of Chase's affidavits outlining its standard mailing procedure.

Krutchik then alleged that Chase had waived its right to arbitrate by filing a third-party complaint against Salam for the alleged fraudulent charges on Krutchik's account. The Court refused to find waiver because Krutchik had not shown how Chase's complaint against Salam was detrimental or prejudicial to Krutchik.

In addition, the Court observed that Chase had promptly moved to compel arbitration within ten days after it was made a party to the matter by Krutchik's motion to substitute Chase as a new defendant. It found "nothing in these actions that would evidence a substantial invocation of the judicial process" that would prejudice Krutchik's interests.