JPMorgan Chase Bank, N.A. v. Bluegrass Powerboats
2014 Ky. LEXIS 92
| Ky. | 2014Background
- Powerboats sold to Shearer; Taylor opened Chase Bank account and deposited Shearer’s check for $123,102, later dishonored for insufficient funds.
- Taylor sued Chase in Jessamine Circuit Court for NSF payment; Chase claimed arbitration under an alleged agreement and moved to stay and arbitrate.
- Trial court relied on affidavits to find Taylor signed an arbitration agreement, referred case to arbitration, and Taylor moved to vacate or make the order final.
- Meanwhile, other claim was litigated, settled, and dismissed; Chase moved to dismiss for timeliness, and arbitration proceeded in NAF.
- Arbitrator dismissed the claim; Ally Cat was decided by this Court, prompting Taylor to move to set aside the arbitration finding; Chase moved to confirm the arbitrator’s award.
- Trial court vacated its earlier arbitration-ordered finding, ruling no valid arbitration agreement existed; a week later, it denied confirmation of the award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether trial court could set aside arbitration order before final judgment | Taylor argues no finality; error in initial arbitration finding; court may revisit interloctory ruling. | Chase contends court must confirm award or vacate/modify after award; judicial review limited post-award. | Trial court had power to set aside prior arbitration order before final judgment. |
| Whether there was a valid arbitration agreement binding the parties | Ally Cat requires assent; Taylor did not sign or receive booklet; no enforceable agreement. | Chase argues habit and documents show agreement existed. | Record supported no valid arbitration agreement existed. |
| Effect of absence of finality on appellate and review rights | Issues could be reviewed on direct appeal if final judgment occurred; interim rulings are reviewable. | If arbitration valid, award governs; otherwise no review of agreement. | Because no arbitration agreement existed, the review of arbitration was moot; trial court could revise before finality. |
Key Cases Cited
- Ally Cat, LLC v. Chauvin, 274 S.W.3d 451 (Ky.2009) (assent to arbitrate must be expressed; receipt of document alone not binding)
- Kindred Hospitals Ltd. Partnership v. Lutrell, 190 S.W.3d 916 (Ky.2006) (interlocutory appeal from arbitration-related orders)
- MHC Kenworth-Knoxville/Nashville v. M & H Trucking, LLC, 392 S.W.3d 903 (Ky.2013) (before examining arbitration, court must determine existence/validity of agreement)
- Louisville Peterbilt, Inc. v. Cox, 132 S.W.3d 850 (Ky.2004) (prima facie evidence of arbitration agreement; writing typically required)
- AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (U.S.2011) (9 U.S.C. § 2 savings clause; validity defenses apply generally, not to arbitration-specific defenses)
- North Fork Collieries, LLC v. Hall, 322 S.W.3d 98 (Ky.2010) (interlocutory review avenues for arbitration decisions; CR 65 relief when FAA governs)
- Dreamers, LLC v. Don’s Lumber and Hardware, Inc., 366 S.W.3d 381 (Ky.2011) (appellate review requirements; right to appeal exists)
- Ally Cat, LLC v. Chauvin, 274 S.W.3d 451 (Ky.2009) (existence of arbitration agreement hinges on assent)