Steven J. Brolin v. Capital One, N.A., et al.

Summary

The United States District Court for the Eastern District of Louisiana granted Citibank, N.A.’s motion to compel arbitration of Steven J. Brolin’s claims arising from alleged credit reporting and collection activity related to accounts included in his spouse’s Chapter 13 bankruptcy. Applying South Dakota contract law, the court found that Brolin consented to the arbitration provisions through use of the credit cards and that his statutory claims fell within the broad arbitration agreements. The court stayed Brolin’s claims against Citibank pending arbitration but allowed his claims against the other defendants to proceed.

Holdings

1. A valid and enforceable arbitration agreement existed because, under the governing South Dakota law, plaintiff's use of the credit cards constituted consent to the card agreements, including the arbitration provisions, even without proof of actual receipt of the agreements.
2. Plaintiff's claims fell within the scope of the arbitration agreements because the agreements covered all claims based on statutory or regulatory provisions, and plaintiff's claims arose under 15 U.S.C. § 1681.
3. The court was required to stay plaintiff's claims against Citibank pending arbitration.
4. The court declined to stay the claims against the other defendants because the record did not establish that a mandatory or discretionary stay was appropriate.

Questions Presented

1. Whether the parties formed a valid and enforceable arbitration agreement under South Dakota law despite plaintiff's asserted lack of actual receipt of the agreements.
2. Whether plaintiff's statutory credit-reporting claims fell within the scope of the arbitration agreements.
3. Whether the claims against Citibank should be stayed pending arbitration and whether the claims against the nonarbitrating defendants should also be stayed.

Disposition

other