James Dillon v. BMO Harris Bank, N.A.
787 F.3d 707
4th Cir.2015Background
- Dillon, NC resident, filed Oct 2013 putative class action against Banks for facilitating payday-loan collections via ACH.
- Banks, not parties to loan agreements, sought to compel arbitration under the FAA.
- District court denied initial motions to compel arbitration for lack of authenticated agreements.
- Banks later obtained declarations authenticating the loan agreements and filed Renewed Motions to compel arbitration.
- Dillon argued Renewed Motions were improper reconsideration; district court treated as reconsideration and denied them.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Jurisdiction under FAA §16(a) | Banks' Renewed Motions seek arbitration | Jurisdiction lacks because it's reconsideration | Appellate jurisdiction exists; Renewed Motions fall under §3/§4 purposes |
| Whether Renewed Motions were properly treated as reconsideration | Renewed Motions seek merits-based arbitration relief | District court could reconsider prior ruling | Treating as reconsideration was error; merits must be resolved |
| Appropriate forum for arbitration issues | Arbitrability hinges on whether Dillon agreed to arbitrate | Arbitration clause governs the disputes | District court must decide arbitrability on merits unless default in arbitration |
Key Cases Cited
- Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614 (1985) (strong federal policy in favor of arbitration)
- Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213 (1985) (arbitration agreements should be enforced)
- Moses H. Cone Mem'l Hosp. v. Mercury Constr. Corp., 460 U.S. 1 (1983) (fraudless and prompt arbitration proceedings; summary resolution when possible)
- Rota-McLarty v. Santander Consumer USA, Inc., 700 F.3d 690 (4th Cir. 2012) (jurisdiction under FAA §16(a) for orders favoring arbitration)
- Wheeling Hosp., Inc. v. Health Plan of the Upper Ohio Valley, Inc., 683 F.3d 577 (4th Cir. 2012) (use of caption to ascertain appellate jurisdiction under FAA)
- Choice Hotels Int'l, Inc. v. BSR Tropicana Resort, Inc., 252 F.3d 707 (4th Cir. 2001) (motion to dismiss can invoke FAA remedies, including stay)