My wife was facing a lawsuit by Discover for a credit card debt of around $9,000 After a lot of back and forth paperwork, she discovered the arbitration clause and requested it, so now their attorney has requested a limited stay pending "defendant's commencement of arbitration with JAMS within the next 30 days" and they also state "said stay should be lifted and the litigation continued if the defendant has not commenced arbitration within such time"
According to Discovers arbitration clause, they will pay your fee if you request them to do so. My wife sent a letter to Discover at the address listed in their agreement for this request, as well as a copy to the court and the Plaintiffs attorney.
My wife is not in a position to pay the initial $400 non-refundable Case Management Fee that JAMS requests. Any idea for the State of CT what she needs to do to press the issue onto Discover to file the arbitration with JAMS? She already submitted a Motion to Compel to the court to have Discover enter into arbitration and pay the fees, below is a copy of the body of the Motion submitted, is there anything else she should do file (their Motion to Stay the case came after her Motion to Compel)
***********DEFENDANT’S MOTION TO COMPEL ARBITRATION
The Defendant in the above titled action respectfully moves that Plaintiff be ordered to enter into Arbitration with Defendant outside of courtroom litigation to settle this matter, for Plaintiff to pay the fees and costs to JAMS to initiate this process, and for the court to Dismiss this case without prejudice in lieu of Arbitration. LEGAL STANDARD
Pursuant to Plaintiff’s own legally binding contract for credit card members:
Agreement to Arbitrate
If a dispute arises between you and us, either may choose to resolve the dispute by binding arbitration, as described below, instead of in court. Any claim (except for a claim challenging the validity or enforceability of this arbitration agreement, including the Class Action Waiver) may be resolved by binding arbitration if either side requests it. This includes claims and disputes relating to any other Account or agreement you have or had with us. THIS MEANS IF EITHER YOU OR WE CHOOSE ARBITRATION, NEITHER PARTY SHALL HAVE THE RIGHT TO LITIGATE SUCH CLAIM IN COURT OR TO HAVE A JURY TRIAL. ALSO DISCOVERY AND APPEAL RIGHTS ARE LIMITED IN ARBITRATION.
Governing Law and Rules
This arbitration agreement is governed by the Federal Arbitration Act (FAA). Arbitration must proceed only with the American Arbitration Association (AAA) or JAMS. The rules for the arbitration will be those in this arbitration agreement and the procedures of the chosen arbitration organization, but the rules in this arbitration agreement will be followed if there is disagreement between the agreement and the organization's procedures. If the organization's procedures change after the claim is filed, the procedures in effect when the claim was filed will apply. For a copy of each organization's procedures, to file a claim or for other information, please contact:
AAA at 335 Madison Ave., Floor 10, New York, NY 10017-5905, www.adr.org
(phone 1-800-778-7879) or JAMS at 620 Eighth Ave., Floor 34, New York, NY 10018, www.jamsadr.com
If both AAA and JAMS are completely unavailable, and if you and we cannot agree on a substitute, then either you or we may request that a court appoint a substitute.
Fees and Costs
If you wish to begin an arbitration against us but you cannot afford to pay the organization's or arbitrator's costs, we will pay those costs if you ask us in writing. Any request like this should be sent to Discover, PO Box 30421, Salt Lake City, UT 84130-0421. If you lose the arbitration, the arbitrator will decide whether you must reimburse us for money we advanced for you for the arbitration. If you win the arbitration, we will not ask for reimbursement of money we advanced. Additionally, if you win the arbitration, the arbitrator may decide that you are entitled to be reimbursed your reasonable attorneys' fees and costs (if actually paid by you).
This is readily viewable on their website at https://www.discover.com/credit-cards/cardmember-agreement/arbitration.htmlARGUMENT
Defendant is legally entitled to arbitration by Plaintiff’s own contract, in place of courtroom litigation, and is selecting this method for resolution of the dispute.