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In affirming confirmation of an arbitration award, the Nebraska Court of Appeals held that a credit card holder agreed to arbitration because his use of the card signified acceptance of the its "terms and conditions."
In MBNA America Bank, N.A. v. Runyan, 2007 WL 776820 (Neb. Ct. App. Mar. 13, 2007), Runyan was issued a credit card by MBNA, which he proceeded to use and pay upon until he defaulted less than two years later. MBNA subsequently filed an arbitration claim with the National Arbitration Forum.
The arbitrator awarded MBNA $11,324. In opposing confirmation of the award, Runyan claimed that the trial court had overlooked deficiencies in the affidavit of MBNA's Custodian of Records, Greg Carnap. Specifically, Runyan claimed that Carnap's affidavit lacked proof.
In rejecting Runyan's argument, the Court noted that attached to the affidavit was an 18-page document containing a history of Runyan's use of the card, a list of payments, a copy of the credit card agreement, and the arbitration award. These documents formed a prima facie case for confirmation, and since Runyan offered no evidence in rebuttal, confirmation of the award was appropriate.
Runyan's insistence on the need for production of two written and signed contracts – one in which he requested the card and the other in which he agreed to arbitrate – did not sway the Court, which held that the terms of the credit card agreement were clearly spelled out and that Runyan's use of the card signified his acceptance.
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