DEFENDANT’S MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
LAW AND MOTION TENTATIVE RULINGS DATE: JUNE 17, 2026 TIME: 8:30 A.M.
Plaintiff’s counsel declares that he missed the first case management conference date due to the notice being misfiled in another matter. He also declares he did not receive the electronic notice setting the OSC for failure to appear, which resulted in this action being dismissed without prejudice on March 27, 2026. (Rawlings Declaration.)
No. 26CV00303
PORTFOLIO RECOVERY ASSOCIATES, LLC v. FURTADO
(UNOPPOSED) DEFENDANT’S MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
The unopposed motion is granted.
I. COMPLAINT AND MOTION
Plaintiff Portfolio Recovery Associates, LLC (“Portfolio”) filed this limited jurisdiction collections case for breach of contract against defendant Vera Furtado (“Furtado”), seeking $6,091.01 in unpaid credit card charges. Portfolio is the assignee of this unpaid debt and “was assigned and transferred all right, title and interest in the credit account.” (Compl. at ¶ 6.) Attached to the complaint as exhibits A and B are copies of Furtado’s account statements with the amount owing. Exhibit C is a document which provides information concerning the account and includes a section on arbitration of claims.
Page 3 of exhibit C contains a section titled “RESOLVING A DISPUTE WITH ARBITRATION.” Section 1 provides that “[i]f either you or we make a demand for arbitration, you and we must arbitrate any dispute or claim between you (including any other use of your account), and us (including our parents, agents, employees, officers, and assignees) that directly or indirectly arises from or relates to your account, your account Agreement or our relationship except as noted below. In addition, any assignees, agent, or service provider of ours that collects amounts due on your account are intended beneficiaries of this Arbitration section and may enforce it in full (notwithstanding any state law to contrary).” (Emphasis added.)
Section 2 states that the arbitration agreement “broadly covers claims, including counterclaim, based upon contract, tort, consumer rights, fraud, and other intentional torts, negligence, constitution, statute, regulation ordinance, common law and equity, and claims for money damages and injunctive or declaratory relief ... .”
Furtado filed an answer on April 10, 2026, and on the same day, filed this motion to compel arbitration as per the agreement between the parties and Code of Civil Procedure section 1281.2. There is no opposition.
Looking for case law or statutes not cited here? Search published authorities
Examples: “Why did the court rule this way?” · “What were the procedural grounds?” · “Is appearance required?”
LAW AND MOTION TENTATIVE RULINGS DATE: JUNE 17, 2026 TIME: 8:30 A.M.
II. LEGAL STANDARDS AND DISCUSSION
Code of Civil Procedure section 1281.2, states, in part, “[o]n petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party to the agreement refuses to arbitrate that controversy, the court shall order the petitioner and the respondent to arbitrate the controversy if it determines that an agreement to arbitrate the controversy exists, unless it determines that:
(a) The right to compel arbitration has been waived by the petitioner; or (b) Grounds exist for rescission of the agreement. (c) A party to the arbitration agreement is also a party to a pending court action or special proceeding with a third party, arising out of the same transaction or series of related transactions and there is a possibility of conflicting rulings on a common issue of law or fact. For purposes of this section, a pending court action or special proceeding includes an action or proceeding initiated by the party refusing to arbitrate after the petition to compel arbitration has been filed, but on or before the date of the hearing on the petition. This subdivision shall not be applicable to an agreement to arbitrate disputes as to the professional negligence of a health care provider made pursuant to Section 1295.”
In ruling on a motion to compel arbitration, the court must first determine whether the parties actually agreed to arbitrate the dispute, and general principles of California contract law help guide the court in making this determination. (Mendez v. Mid-Wilshire Health Care Center (2013) 220 Cal.App.4th 534, 541.) “The general background begins with the tenet that the law favors enforcement of arbitration agreements. [Citation.]” (Ashburn v. AIG Financial Advisors, Inc.(2015) 234 Cal. App.4th 79, 95.)
Under both the Federal Arbitration Act and California law, arbitration agreements are valid, irrevocable, and enforceable, except on such grounds that exist at law or equity for voiding a contract. (Winter v. Window Fashions Professions, Inc. (2008) 166 Cal.App.4th 943, 947.) The party moving to compel arbitration must establish the existence of a written arbitration agreement between the parties. (Code of Civ. Proc. § 1281.2.)
"The party seeking to compel arbitration has the burden of proving the existence of an enforceable arbitration agreement by a preponderance of the evidence, and a party opposing the petition bears the burden of proving by a preponderance any fact necessary to its defense." (Baker v. Italian Maple Holdings, LLC (2017) 13 Cal.App.5th 1152, 1157.) Generally, it is sufficient for petitioner to present a copy of the contract. (Condee v. Longwood Mgt. Corp. (2001) 88 Cal.App.4th 215, 218; Cal. Rules of Court, Rule 3.1330.) Once a document is presented to the court, the burden shifts to the party opposing the motion to compel, who may
LAW AND MOTION TENTATIVE RULINGS DATE: JUNE 17, 2026 TIME: 8:30 A.M.
present any challenges to the enforcement of the agreement and evidence in support of those challenges. (Baker v. Italian Maple Holdings, LLC (2017) 13 Cal.App.5th 1152, 1160.)
“The party seeking to compel arbitration need only allege in the petition or motion: (1) the existence of a written agreement to arbitrate a controversy and (2) that a party thereto refuses to arbitrate such controversy [Code Civ. Proc. § 1281.2]. The statute does not include a requirement that the petitioning party have made a demand for arbitration, only that the other party has refused to arbitrate. Arbitration can be refused without a formal demand ever having been made [Hyundai Amco Am., Inc. v.
S3H, Inc. (2014) 232 Cal.App 4th 572, 577.]. A party’s filing of a lawsuit rather than commencing arbitration proceedings as required by the agreement affirmatively establishes the party’s refusal to arbitrate the controversy [Hyundai Amco Am., Inc. v. S3H, Inc. (2014) 232 Cal. App. 4th 572, 578 (reversing order denying motion to compel)].” (4 California Forms of Pleading and Practice--Annotated § 32.40.)
In this case, the existence of an arbitration agreement is evidenced by the documents attached to plaintiff’s complaint. Furtado carried her initial burden demonstrating the existence of an arbitration agreement. The agreement includes assignees, such as plaintiff. The burden shifts to plaintiff to establish any defense, such as unconscionability. (Pinnacle Museum Tower Assn. v. Pinnacle Market Development (US), LLC (2012) 55 Cal.4th 223, 236.) Because plaintiff failed to oppose this motion, it has not carried its burden.
Furtado is ordered to initiate arbitration proceedings pursuant to the terms of the agreement. All proceedings are stayed pending the outcome of arbitration.