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A federal court in Michigan ordered arbitration based on the rule that a nonsignatory to an arbitration agreement may compel arbitration when the dispute is integrally related to an agreement containing an arbitration clause.
In Cunningham v. Van Ru Credit Corporation, No. 06-10452, 2006 WL 3289775 (E.D. Mich. Nov. 12, 2006), Cunningham sued Van Ru for alleged violations of the Fair Debt Collection Practices Act.
Cunningham alleged that Van Ru sent a letter on Caption One stationary recommending that Cunningham contact Van Ru to set up a payment plan for his delinquent credit card account. Van Ru filed a motion to compel arbitration pursuant to an arbitration agreement in the cardholder agreement between Cunningham and Capital One.
The Court ordered the parties to arbitrate their dispute based on the rule that a nonsignatory may compel arbitration of a signatory’s claims if the claims are integrally related to the agreement containing the arbitration clause.
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