Inetianbor v. CashCall, Inc.
962 F. Supp. 2d 1303
S.D. Fla.2013Background
- Inetianbor borrowed $2,525 from Western Sky under a loan agreement serviced by CashCall; the agreement required arbitration "by the Cheyenne River Sioux Tribal Nation" under its consumer dispute rules and by an authorized representative (e.g., a Tribal Elder).
- CashCall removed a state defamation/credit-reporting suit to federal court and moved to compel arbitration; the Court initially granted arbitration, then reopened the case when the Tribe appeared to disavow providing arbitration.
- CashCall renewed its motion, producing a letter from Tribal Elder Robert Chasing Hawk stating he would serve as arbitrator and a clarification from the Tribal judge that the Tribal Court does not provide arbitration but arbitration is permissible privately. The Court again compelled arbitration.
- Plaintiff later produced a transcript of an arbitration hearing in which Chasing Hawk stated he was selected by the Western Dakota (Western Sky) owner and that the Tribe had "nothing to do with any of this business," and Plaintiff submitted an affidavit showing Tribal legal code lacked consumer dispute rules.
- The Court found this new evidence showed the Tribe does not conduct arbitration through an authorized representative and lacks the consumer dispute rules required by the contract, vacated the order compelling arbitration, and reopened the case.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration forum designated (Cheyenne River Sioux Tribe via an authorized representative under its consumer dispute rules) is available | Tribe does not conduct arbitration through an authorized representative and has no consumer dispute rules; forum unavailable => agreement void | Tribe/arbitration is permissible; CashCall produced an elder (Chasing Hawk) and other elders available | Held: Forum unavailable. Chasing Hawk is not acting as an authorized Tribal representative and Tribe lacks consumer dispute rules; arbitration agreement voided |
| Whether alleged arbitrator bias or pre-selection justifies refusing arbitration now | Bias and collusion (Chasing Hawk’s daughter employed by Western Sky; Lakota Cash involvement) show partiality and collusion | Arbitral bias claims are for post-award review (FAA §10) and not a basis to avoid arbitration now | Held: Bias arguments do not prevent compelling arbitration generally, but here other evidence about forum availability controls; bias challenges remain for vacatur after award |
| Whether absence of Tribal consumer dispute rules defeats contract term requiring arbitration "in accordance with" those rules | The agreement expressly requires arbitration under Tribal consumer dispute rules, which do not exist; hence forum unavailable | CashCall did not contest absence of rules at hearing and argued other elders could serve | Held: Absence of consumer dispute rules means arbitration cannot be conducted as agreed; forum unavailable |
| Standard for reconsidering non-final order compelling arbitration | Reconsideration available for new evidence, change in controlling law, or clear error affecting arbitrability threshold | N/A (Court applies Rule 54(b) and precedents) | Held: Court applied Rule 54(b); new evidence regarding forum availability justified reconsideration and vacatur of the May 17 order |
Key Cases Cited
- Brandon, Jones, Sandall, Zeide, Kohn, Chalal & Musso, P.A. v. MedPartners, Inc., 203 F. R. D. 677 (S.D. Fla. 2001) (arbitrator-bias challenges generally confined to post-award review)
- Gulf Guar. Life Ins. Co. v. Conn. Gen. Life Ins. Co., 304 F.3d 376 (5th Cir. 2002) (FAA does not provide for removal of an arbitrator prior to an award; bias addressed at vacatur stage)
- Burger King Corp. v. Ashland Equities, Inc., 181 F. Supp. 2d 1366 (S.D. Fla. 2002) (motions for reconsideration target manifest errors, newly discovered evidence, or intervening law)
- Z.K. Marine, Inc. v. M/V Archigetis, 808 F. Supp. 1561 (S.D. Fla. 1992) (reconsideration should not relitigate issues already decided)