CACH, LLC v. Brandon Potter

Summary

The Rhode Island Supreme Court affirmed summary judgment for CACH, LLC in a credit card debt collection action against Brandon Potter. The court held that Potter waived arbitration by failing to plead it as an affirmative defense and that the trial justice properly denied his untimely motion to amend. The court also concluded that Potter failed to establish a genuine issue of material fact regarding CACH’s standing, the admissibility of business records, or the debt.

Holdings

1. A defendant seeking arbitration must specifically plead the right to arbitrate in the answer; failure to do so waives the defense. Potter therefore waived arbitration, and the Superior Court properly denied his motion to compel arbitration and dismiss or stay the action.
2. The Superior Court did not abuse its discretion in denying Potter's motion to amend his answer to assert arbitration because the motion was filed more than a year and a half after the answer, amendment would cause extreme prejudice to CACH, and allowing amendment would circumvent the rule that arbitration must be pleaded or is waived.
3. CACH was entitled to summary judgment because the record contained no genuine issue of material fact and CACH was entitled to judgment as a matter of law. Potter failed to submit evidence or affidavits sufficient to oppose CACH's evidence concerning the debt and assignment.

Questions Presented

1. Whether Potter waived his right to compel arbitration by failing to plead arbitration as an affirmative defense in his answer.
2. Whether the Superior Court abused its discretion by denying Potter's motion to amend his answer to add a demand for arbitration.
3. Whether CACH was entitled to summary judgment because no genuine issue of material fact existed concerning the debt, CACH's assignment of the account, or CACH's entitlement to collect.

Disposition

affirmed