United States District Court, N.D. Ohio, Eastern Division
OPINION AND ORDER
Christopher A. Boyko, United States District Judge.
matter comes before the Court upon the Motion (ECF DKT #15)
of Cavalry Defendants to Compel Arbitration and the Motion
(ECF DKT #16) of Defendants Lloyd & McDaniel PLC, James
M. Lloyd, Michael J. Linden, Megan Urban and Gregory L.
Crutcher to Compel Arbitration. For the following reasons,
the Motions to Compel Arbitration are denied. Also, the
Motion (ECF DKT #19) of Plaintiff Kelley Williams to Conduct
Limited Discovery necessary to submit her opposition to the
Motions to Compel Arbitration is denied as moot.
captioned matter originated in Cuyahoga County Common Pleas
Court and was removed on June 29, 2018, on the basis of
federal question jurisdiction. Plaintiff alleges that
Defendants violated the Fair Debt Collection Practices Act
and the Ohio Consumer Sales Practices Act when they filed a
complaint against her in Parma Municipal Court in an attempt
to collect on a consumer debt.
Cavalry SPV I LLC and its related entities move to compel
Plaintiff to arbitrate her claims. Plaintiff applied for a
JCPenney-branded credit card and her application was approved
on July 28, 2003. The credit card agreement contained an
arbitration provision. After a merger, GE Money Bank issued
Plaintiff an amended credit card agreement which also
included an arbitration provision. GE Money Bank became GE
Capital Retail Bank and a new credit card agreement was
issued in 2012. GE Capital Retail Bank became Synchrony Bank.
Synchrony's records show that the last purchase on
Plaintiff's account was on or about March 19, 2013. The
account was “charged-off” due to non-payment and
the account was sold to Cavalry SPV I LLC on August 23, 2016.
At all times, the credit card agreements required Plaintiff
to assent to arbitration. Synchrony has no record of a notice
from Plaintiff exercising her right to reject the arbitration
2012 amended credit card agreement (ECF DKT #18-1) provides
that “by opening or using your account, you agree to
the terms of the entire Agreement.” Additionally:
Parties to this Agreement. This Agreement
applied to each accountholder approved on the account and
each of you is responsible for paying the full amount due, no
matter which one uses the account. We may treat each of you
as the accountholder and may refer to each of you as
“you” or “your”. GE Capital Retail
Bank may be referred to as “we”, “us”
If either you or we make a demand for arbitration, you and we
must arbitrate any dispute or claim between you or any other
user of your account, and us, our affiliates, agents and/or
J.C. Penney Corporation, Inc. if it relates to your
in the 2012 credit card agreement, Plaintiff agreed that GE
Capital Retail Bank “may sell, assign, or transfer any
or all of [its] rights or duties under this Agreement or [ ]
account, including [its] rights to payments.”
SPV I LLC contends that it purchased and took assignment of
Plaintiff's account and all of the Bank's rights
associated with her account. Cavalry SPV I LLC insists that
it stands in the shoes of the creditor bank. The other
Cavalry Defendants are related entities and the Lloyd
Defendants are lawyers and agents of Cavalry. Thus,
Defendants argue that they are empowered to enforce the
arbitration provision against Plaintiff.
does not oppose the Motions to Compel Arbitration on their
merits at this juncture, but seeks leave to conduct discovery
in order to formulate a response.
LAW AND ANALYSIS
Federal Arbitration Act (“FAA”) 9 U.S.C.