Henggeler v. Brumbaugh & Quandahl, P.C.
894 F. Supp. 2d 1180
D. Neb.2012Background
- This is a putative FDCPA class action against Midland Funding and related debt-collection entities.
- Midland seeks to stay and compel arbitration or dismiss in favor of arbitration; Henggeler opposes.
- Midland claims an arbitration agreement exists via a Chase cardmember agreement; Henggeler denies ever signing or seeing it.
- Evidence includes Paperman affidavit and a sale/assignment of debt, but the record lacks a signed agreement or clear chain of assignment.
- Henggeler asserts no agency relationship with any daughter or signer; Midland’s evidence is largely hearsay or non-firsthand.
- Court declines to enforce arbitration at this stage, denying the motion without prejudice pending further discovery.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of a valid arbitration agreement | Henggeler did not sign or see the agreement. | Midland acquired rights and agues terms via assignment/agency. | No valid arbitration agreement shown on record. |
| Scope of the arbitration clause (FDCPA claims) | FDCPA claims fall outside arbitration scope or unconscionable. | Arbitration clause covers disputes arising from the credit agreement. | Record insufficient to determine scope; unconscionability not resolved. |
Key Cases Cited
- Art Etc., LLC v. Angel Gifts, Inc., 686 F.3d 654 (8th Cir. 2012) (gateway question; arbitrability—whether valid arbitration exists)
- Lyster v. Ryan’s Family Steak Houses, Inc., 239 F.3d 943 (8th Cir. 2001) (arbitration under FAA; contract must be valid)
- Green Tree Fin. Corp. v. Bazzle, 539 U.S. 444 (U.S. 2003) (courts decide arbitrability as gateway issue)
- Barker v. Golf U.S.A., Inc., 154 F.3d 788 (8th Cir. 1998) (arbitration clause applicability to certain disputes)
- Howsam v. Dean Witter Reynolds, Inc., 537 U.S. 79 (U.S. 2002) (question of arbitrability; gateway issue)
- Casarotto v. Doc. 517 U.S. 681, 517 U.S. 681 (U.S. 1996) (unconscionability considerations; state contract defenses)
- Cicle v. Chase Bank USA, 583 F.3d 549 (8th Cir. 2009) (arbitration and unconscionability in cardmember agreements)
- E.E.O.C. v. Woodmen of World Life Ins. Society, 479 F.3d 561 (8th Cir. 2007) (state contract law governs validity of arbitration agreement)
- Lindsay Ins. Agency v. Mead, 508 N.W.2d 820 (Neb. 1993) (Nebraska contract formation elements)
- Myers v. Neb. Inv. Council, 724 N.W.2d 799 (Neb. 2006) (procedural vs. substantive unconscionability; disparity in bargaining)