Motion to Compel Arbitration
Case No.: 25CV461251
BACKGROUND Plaintiff JPMorgan Chase Bank, N.A. (“Plaintiff”) brings this action for breach of contract against Defendant Ryan Ourique (“Defendant”) with regards to a credit card account.
Plaintiff alleges “Defendant failed to make payments on the contract as agreed, and despite Plaintiff’s demand, Defendant continues to refuse to pay Plaintiff the amount owed under the contract.” (Complaint at p. 3.)
Defendant is in default and the unpaid balance owed is $7,796.11. (Ibid.)
Defendant moves to arbitrate these claims based on the Arbitration Agreement contained in the Cardmember Agreement (“the Agreement”). Having reviewed the Agreement, the Court concludes the motion should be granted.
LEGAL STANDARD Defendant maintains the Federal Arbitration Act (“FAA”) governs the Agreement. The Agreement provides, “[t]his agreement to arbitrate is governed by the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq.” (Mtn to Compel Arbitration, Ex. A.)
Under the FAA, the court’s role is limited to determining “(1) whether a valid agreement to arbitrate exists, and if it does (2) whether the agreement encompasses the dispute at issue.” (Chiron Corp. v. Ortho Diagnostic Systems, Inc. (9th Cir. 2000) 207 F.3d 1126, 1130.)
To determine “whether a valid contract to arbitrate exists,” courts apply “ordinary state law principles that govern contract formation.” (Davis v. Nordstrom, Inc. (9th Cir. 2014) 755 F.3d 1089, 1093 [citations omitted]; see also Ingle v. Circuit City Stores, Inc. (9th Cir. 2003) 328 F.3d 1165, 1170.)
ANALYSIS There is a Valid Agreement to Arbitrate A valid agreement to arbitrate exists between the parties.
“[T]he moving party bears the burden of producing ‘prima facie evidence of an agreement to arbitrate the controversy.’ The moving party ‘can meet its initial burden by attaching to the [motion or] petition a copy of the arbitration agreement purporting to bear the [opposing party’s] signature.’” (Gamboa v. Northeast Community Clinic (2021) 72 Cal.App.5th 158, 165-166 [internal citations and quotations omitted].)
Here, Defendant has attached a copy of the Cardmember Agreement containing the arbitration clause as an exhibit to his motion. (Mtn. to Compel Arbitration, Ex. A.)
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Although the Agreement does not bear any signatures by either party, “it is not the presence or absence of a signature which is dispositive; it is the presence or absence of evidence of an agreement to arbitrate which matters.” (Banner Entertainment, Inc. v. Superior Court (1998) 62 Cal.App.4th 348, 361 [emphasis in original].)
In this instance, the memorialized terms of arbitration in the Cardmember Agreement are evidence of an agreement to arbitrate.
Additionally, Defendant’s effort to enforce the Agreement is evidence of his intent to be bound by its terms as is Plaintiff’s non-opposition to this motion. (Serafin v. Balco Properties, LLC (2015) 235 Cal.App.4th 165, 176 [“Evidence confirming the existence of an agreement to arbitrate, despite an unsigned agreement can be based, for example on conduct from which one could imply either ratification or implied acceptance of such a provision.”].)
Therefore, a valid agreement to arbitrate exists between the parties.
The Scope of the Agreement Covers Plaintiff’s Claims The scope of the Arbitration Agreement contained in the Cardmember Agreement covers Plaintiff’s claims.
The Agreement provides: This arbitration agreement provides that all disputes between you and Chase must be resolved by BINDING ARBITRATION whenever you or we choose to submit or refer a dispute to arbitration . . . All claims or disputes between you and us about or relating to in any way to your account, any prior account, your Cardmember Agreement with us (including any future amendments), any prior Cardmember Agreement, or our relationship are referred to as “Claims” for purposes of this agreement to arbitrate. Claims include, for example, claims or disputes arising from or relating in any way to transactions involving your account; any interest, charges, or fees assessed on your account; any service(s) or programs related to your account; any communications related to your account; any collection or credit reporting of your account. (Mtn. to Compel Arbitration, Ex. A.)
Plaintiff’s claim pertains to the credit card account held by Defendant. Plaintiff’s allegations are that Defendant has failed to make payments on the account and is now in default of $7,796.11. (Complaint at p. 3.)
Thus, Plaintiff’s claims are covered by the scope of the Agreement.
Plaintiff does not object to these arguments and has instead filed a “Limited nonopposition to motion to compel arbitration.”
As the claimant in this action, Plaintiff may select either JAMS or AAA in accordance with the Agreement. (See Mtn. to Compel Arbitration, Ex. A.)
For these reasons, the Court GRANTS the Motion to Compel Arbitration.
This action is hereby STAYED pending the outcome of arbitration. (Code Civ. Proc. § 1281.4; 9 U.S.C. § 3.)
CONCLUSION The Motion to Compel Arbitration is GRANTED.
This action is STAYED pending the outcome of arbitration.
The Court will prepare the order.
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