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Affirming a trial court order confirming an arbitration award in a credit card dispute, an Indiana appellate court held that the cardholder’s challenge to the award was time barred under the Federal Arbitration Act (FAA) and also upheld the FORUM Code of Procedure method for delivering an arbitration award by U.S. mail.
In Weldon v. Asset Acceptance, LLC, No. 53A01-0804-CV-159, 2008 WL 4980408 ( Ind. Ct. App. Nov. 25, 2008), Weldon had an MBNA credit card. The MBNA credit card contract contained an arbitration agreement. He fell behind on his payments and stopped making them in 1999. Eventually, Asset Acceptance became the assignee of MBNA’s credit card debt.
In October 2006, Asset Acceptance filed a claim with the National Arbitration Forum (FORUM) for the unpaid balance. The arbitrator awarded Asset Acceptance $29,348.85 on December 11, 2006. The FORUM stated that it mailed the award on the following day. On May 22, 2007, Asset Acceptance moved to confirm the award. Weldon moved to vacate the award and for summary judgment, arguing that he did not know about the arbitration and that the FORUM had improperly served notice of the award by U.S. Mail. The trial court confirmed the award and Weldon appealed.
Affirming the trial court, the Court held that Weldon’s challenge was time barred by the FAA. Under the FAA, "[n]otice of a motion to vacate… an award must be served upon the adverse party or his attorney within three months after the award is filed or delivered." Here, Weldon filed his motion to vacate the award on August 6, 2007, more than three months after the arbitrator issued his award on December 11, 2006 and the FORUM mailed it via US Mail on December 12, 2006,
The Court also rejected Weldon’s argument that it was not proper to serve notice via U.S. mail, as the credit card arbitration agreement clearly and unequivocally incorporated the FORUM Code of Procedure. The FORUM Code of Procedure expressly permits delivery of an arbitration award via U.S. Mail. Because the Court found the evidence that the FORUM mailed notice of the award indisputable, it chose not to toll the three-month deadline under Section 12 of the FAA.
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