Where a credit card company filed a motion to confirm an arbitration award along with the requisite documentation, and the credit card holder did not file a motion to vacate the award, the law required the court to confirm the award because courts do not have authority to vacate an award on their own initiative, according to the Ohio Court of Appeals.

In NCO Portfolio Management, Inc. v. Gubanyar, No. 90480, 2008 WL 2932143 (Ohio Ct. App. July 31, 2008), NCO filed an arbitration claim against Gubanyar for unpaid credit card debt. The arbitrator issued an award in favor of NCO, and NCO subsequently filed an application to confirm the award.

Gubanyar responded by sending NCO a letter stating that she was "not disputing" the debt but nevertheless asking NCO to dismiss its application. At the hearing on NCO’s application, the trial court asked NCO for proof that Gubanyar had been notified of the arbitration hearing. NCO could not provide proof of notice, and as a result, the trial court vacated the award on the ground that it "was procured by . . . undue means."

On appeal, the Court held that the trial court erred in denying NCO’s motion to confirm the award because Gubanyar did not file a motion to vacate the award, and under Ohio law, "the court must grant [a motion to confirm] if a timely motion to vacate the award has not been made." In other words, trial courts have no authority to vacate an award sua sponte (i.e., on their own initiative).

Moreover, as the Court noted, "the trial court lacked authority to require [NCO] to submit additional evidence" since NCO had already filed the requisite documentation – namely, the arbitration agreement and award.

Given the trial court’s lack of authority to require additional evidence or vacate the award, the Court remanded the case with instructions to enter judgment on the award.