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In reversing a lower court ruling that a credit card holder's challenge to an arbitration award was untimely, the Arkansas Supreme Court held that the 90-day deadline for challenging an award under the Federal Arbitration Act does not come into play unless there is a written agreement to arbitrate.
In Danner v. MBNA America Bank, N.A., No. 06-1429, 2007 WL 1219747 (Ark. Apr. 26, 2007), MBNA filed an arbitration claim against Danner in an attempt to collect the balance allegedly owing on an MBNA credit card. The arbitrator awarded MBNA $6,198.13.
A few months later, MBNA filed a motion to confirm the award. Danner opposed confirmation on the ground that she did not participate in the arbitration and never entered into an arbitration agreement with MBNA. In response, MBNA argued that the 90-day deadline for challenging the award had already passed. The trial court confirmed the award.
On appeal, the Court relied on MCI Telecommunications Corp. v. Exalon Industries, Inc., 138 F.3d 426 (1st Cir. 1998) in concluding that the 90-day deadline for challenging an award under the Federal Arbitration Act (FAA) "do[es] not come into play unless there is a written agreement to arbitrate." Accordingly, the Court remanded the case to the trial court to determine whether MBNA and Danner were parties to a written arbitration agreement.
On remand, if MBNA establishes the existence of a written arbitration agreement, the FAA deadlines will be back in play, thus foreclosing any other grounds for challenging the award. The opinion does not address whether the Award contained a finding that a written agreement to arbitrate existed between the parties.
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