Thompson v. Lithia ND Acquisition Corp. #1

Summary

The North Dakota Supreme Court affirmed orders compelling arbitration, confirming an arbitration award, and denying Lynne Thompson’s motion to vacate the judgment or obtain a new trial. The court held that the district court did not err in applying North Dakota arbitration law, determining the arbitration agreement was not unconscionable, or confirming the award. The court also held Thompson waived her challenge to the arbitrator-selection process by failing to object before or during arbitration, and that the Federal Arbitration Act did not preclude confirmation under North Dakota law.

Holdings

1. The Federal Arbitration Act does not preempt all state arbitration law, and the district court did not err by failing to apply only the FAA to the proceedings.
2. The arbitration agreement was not unconscionable, and the district court properly compelled arbitration.
3. Thompson waived her challenge to the arbitrator-selection procedure by failing to object in writing before proceeding with arbitration.
4. The one-year period in FAA § 9 did not preclude confirmation of the arbitration award under North Dakota law, and the district court was required to confirm the award after denying the motion to vacate.

Questions Presented

1. Whether the district court erred by applying North Dakota arbitration law rather than applying only the Federal Arbitration Act.
2. Whether the vehicle-purchase arbitration agreement was unconscionable and unenforceable.
3. Whether Thompson waived her challenge to the arbitrator-selection procedure by failing to object before or during the arbitration.
4. Whether the district court could confirm the arbitration award when confirmation was not sought within the one-year period referenced in Section 9 of the Federal Arbitration Act.

Disposition

affirmed