|
The Massachusetts Appeals Court confirmed an arbitration award against a credit card holder who earlier obtained a sham award against the card issuer.
In MBNA America, NA v. Silva, No. 9949, 2006 WL 2223802 (Mass. App. Ct. July 27, 2006), MBNA sent Silva an amended cardholder agreement providing that any disputes between the parties would be resolved through arbitration administered by the National Arbitration Forum.
Silva later submitted an arbitration claim to an organization called the Consumer Arbitration Forum (CAF). CAF found that MBNA owed Silva $10,737. Shortly thereafter, MBNA initiated arbitration via the National Arbitration Forum. In the arbitration administered by the National Arbitration Forum, the arbitrator awarded MBNA $13,378.72.
MBNA moved to confirm the award issued in the Forum-administered arbitration. The trial court confirmed the award.
On appeal, Silva argued that the Court should not enforce the arbitration provision in the amended cardholder agreement. In rejecting this argument, the Court noted that Delaware law allows unilateral amendment of cardholder agreements so long as notice is given. The Court also pointed out that Silva’s presentation of a claim to the CAF was moot because the amended agreement clearly stated that arbitration would be administered by the National Arbitration Forum.
Subscribe to a free weekly update on ADR case law and
legislation
|