FIA Card Services, N.A. v. Weaver
62 So. 3d 709
La.2011Background
- Weaver, a credit card holder, was sued to enforce an arbitration award issued by the National Arbitration Forum for about $32,012.40.
- FIA filed a petition to confirm the NAF award in state court after Weaver did not participate in the arbitration.
- FIA attached various documents, including unsigned arbitration-related papers; there were affidavits authenticating the award but no authentication for the original agreement or addenda.
- The district court granted confirmation, holding Weaver’s failure to timely move to vacate waived defenses and that the arbitrator’s finding of a valid arbitration agreement was binding.
- The First Circuit affirmed, recognizing conflict with other circuits and granting writs to resolve whether lack of a timely motion to vacate forecloses defenses to confirmation.
- The Louisiana Supreme Court reversed, holding that a court must first determine whether an arbitration agreement exists before confirming an award, and FIA failed to prove such an agreement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Waiver of defenses via failure to vacate | Weaver waived defenses by not timely moving to vacate. | Waiver cannot defeat lack of an arbitration agreement; issue remains open for court review. | Not waived; court must assess arbitration agreement existence. |
| Requirement of arbitration agreement for confirmation | Arbitration agreement shown by arbitrator's finding suffices. | Existence of agreement is for the court, not the arbitrator, to decide. | Court must determine existence of arbitration agreement before confirmation. |
| Sufficiency of evidence of arbitration agreement | Pamphlets and notices created a binding arbitration agreement by consent. | No admissible evidence shows Weaver consented or that notices were properly mailed. | Record fails to prove a binding arbitration agreement between FIA/MBNA and Weaver. |
Key Cases Cited
- MCI Telecommunications Corp. v. Exalon Industries, Inc., 138 F.3d 426 (1st Cir. 1998) (existence of written arbitration agreement is a threshold issue for enforcement)
- International River Center v. Johns-Manville Sales Corp., 861 So.2d 139 (La. 2003) (federal act preemption and FAA preemption guidance in Louisiana context)
- Yates v. CACV of Colorado, LLC, 303 Ga.App. 425, 693 S.E.2d 629 (Ga. Ct. App. 2010) (burden to prove existence of arbitration agreement; defense not limited by 3-month deadline)
- Bank of America, N.A. (USA) v. Dahlquist, 336 Mont. 50, 152 P.3d 718 (Mont. 2007) (no arbitration agreement nullifies award regardless of tardy defense when arbitrator lacked jurisdiction)
- Moses H. Cone Memorial Hospital v. Mercury Construction Corp., 460 U.S. 1 (Supreme Court 1983) (courts determine existence of arbitration agreement; arbitrator cannot decide validity of agreement)