MBNA America Bank, NA v. Straub,

[David A. Szwak]

MBNA America Bank, NA v. Straub,
12 Misc.3d 963, 815 N.Y.S.2d 450, 2006 N.Y. Slip Op. 26209, N.Y.City Civ.Ct., May 25, 2006

DIANE A. LEBEDEFF, J.
*964 After credit card issuers and credit card debt holders turn to arbitration to address delinquent credit card accounts, as they do increasingly, courts are presented with post-arbitration petitions to confirm arbitration awards and enter money judgments (CPLR 7510). This decision sets out the statutory and constitutional framework for review of a petition to confirm a credit card debt arbitration award, utilizing legal precepts relating to confirming arbitration awards and credit cards, a novel approach most suited to this type of award.FN1

FN1. Although the analysis is different, the results reached here are consistent with conclusions reached in other cases ( see Worldwide Asset Purchasing, LLC v. Karafotias, 9 Misc.3d 390, 801 N.Y.S.2d 721 [Civ. Ct., Kings County 2005, Battaglia, J.], denying default judgment on credit card arbitration award; see Citibank [South Dakota], N.A. v. Martin, 11 Misc.3d 219, 807 N.Y.S.2d 284 [Civ. Ct., N.Y. County 2005, Lebedeff, J.], credit card collection plenary action and summary judgment motion requirements).


**452 [1] [2] Briefly put, to grant a petition to confirm an arbitration award on a credit card debt, a court must require the following: (1) submission of the written contract containing the provision authorizing arbitration; (2) proof that the cardholder agreed to arbitration in writing or by conduct; and (3) a demonstration of proper service of the notice of the arbitration hearing and of the award. In addition, the court must consider any supplementary information advanced by either party regarding the history of the parties' actions. Judicial review of the petition should commence under the New York provisions governing confirmation of an arbitration award, but if the written contract and cardholder agreement are established by the petition the manner of service of the notice and award and treatment of supplementary information should be considered under the Federal Arbitration Act provisions (9 U.S.C. § 1, et seq., “FAAâ€