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The Appellate Division of the Supreme Court of New York held that a certified mail receipt created a presumption of notice, which could not be rebutted merely by a party’s claim that he never received notice of the arbitration proceedings.
In Fodor v. MBNA America Bank, N.A., 2006 WL 3234235 (N.Y. App. Div. Nov. 8, 2006), MBNA used certified mail to notify one of its customers, Fodor, of its intent to initiate arbitration. Fodor signed the certified mail receipt card but later claimed he was never notified of the arbitration proceeding.
The Court ruled that Fodor had received sufficient notice and, accordingly, that the trial court properly confirmed the arbitration award. As the Court observed, Fodor’s signature on the certified mail receipt card contradicted his claim that he was never notified of the arbitration.
New York has special requirements for consumer credit arbitrations, outlined in MBNA America Bank, N.A. v. Straub, 815 N.Y.S.2d 450 (N.Y. Civ. Ct. May 25, 2006). In such cases, the party wishing to confirm the award must present a written agreement to arbitrate, establish that the unilateral credit card agreement is binding on the borrower, and prove that notice of both the arbitration hearing and the arbitration award complied with New York law.
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