ROBINSON v. PNC BANK
2:13-cv-07818
D.N.J.Jun 2, 2017Background
- Robinson bought a vehicle from Linden Volkswagen; the sales contract contained a broad arbitration clause and was later assigned to PNC.
- Robinson sued Linden Volkswagen and PNC alleging fraudulent lending and that the sales contract was unenforceable because the dealer did not sign; she proceeded pro se.
- This Court compelled arbitration and appointed Judge Richard C. Camp as arbitrator; Robinson later stipulated that her claims against PNC be arbitrated with Linden Volkswagen.
- Robinson alleged conflicts and collusion (between Judge Camp and Linden’s counsel/PNC’s counsel) in letters and a second suit; the Court dismissed that suit and denied removal of the arbitrator for lack of supporting facts.
- Robinson failed to appear at the arbitration; Judge Camp awarded PNC $30,869.30 plus per diem interest on March 10, 2016; Robinson did not move to vacate the award within the statutory period.
- PNC moved to reopen the case, confirm the arbitration award, and enter judgment under the Federal Arbitration Act; Robinson did not oppose that motion and instead filed motions alleging judicial misconduct, which were denied in part.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration award should be confirmed under 9 U.S.C. § 9 | Robinson contends the contract was unenforceable and arbitration improper; alleges bias/collusion by the arbitrator | PNC argues the arbitration clause permits court confirmation, timely filed within one year, and no timely challenge to the award exists | Court confirmed the award: parties consented to district-court confirmation, PNC timely moved, and no timely vacatur was filed |
| Whether contract validity defeats arbitration | Robinson argues the sales contract was not binding (dealer signature missing) so the case should not have been sent to arbitration | PNC stresses Robinson stipulated to arbitration and contract validity is for the arbitrator to decide | Court held contract validity is for the arbitrator (Buckeye principle); Court previously indicated contract enforceable under UCC and will not revisit arbitrator’s factual/legal determinations absent manifest disregard |
| Whether arbitrator bias/collusion warrants vacatur | Robinson alleges collusion and statements showing Judge Camp was partial | PNC contends allegations are unsupported, procedural safeguards were provided, and Robinson failed to appear | Court rejected allegations as speculative and unsupported; not “powerfully suggestive” of bias and did not produce fundamental unfairness |
| Whether Robinson forfeited challenges to the award | Robinson raised arguments in other filings but did not move to vacate, modify, or correct under FAA time limits | PNC notes no §10 motion within three months and no §9 opposition within one year | Court found Robinson forfeited statutory challenges by failing to timely file a vacatur motion and thus confirmed the award |
Key Cases Cited
- Buckeye Check Cashing, Inc. v. Cardegna, 546 U.S. 440 (arbitrability and contract validity are for arbitrator when arbitration clause is broad)
- Whitehead v. Pullman Grp., LLC, 811 F.3d 116 (stipulated arbitration is binding)
- Sun Ship, Inc. v. Matson Navigation Co., 785 F.2d 59 (courts do not review arbitrator errors of law on the merits)
- United Paperworkers Int'l Union v. Misco, Inc., 484 U.S. 29 (narrow review of arbitration awards; manifest disregard standard)
- Andorra Servs., Inc. v. Venfleet, Ltd., [citation="355 F. App'x 622"] (arbitrator partiality requires powerful, objective evidence)
- Jeereddi A. Prasad, M.D., Inc. v. Inv'rs Assocs., Inc., 82 F. Supp. 2d 365 (FAA challenge timeliness and §12 discussion)
- Service Employees Int'l Union v. Office Ctr. Servs., Inc., 670 F.2d 404 (timing and finality principles for arbitration challenges)