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Well, then. So, by that logic, you also can't be held to contract terms such as interest rates, repaying the debt, etc. All the provisions of the contract they are trying to enforce through the court. All you have to do is refuse to acknowledge the debt, and you are off the hook? I'd love to see that established as case law!

Hello all. Just an update on this. The 9/21 court date was adjourned and re-scheduled to 10/29. Three days before the court date, the lawyer submitted an opposition to my motion electronically at 4:47pm. I went the next day to submit my answer to that. I am very surprised at their opposition as it went against what they were trying to prove. The evidence they submitted is actually in my favor. As of now the docket still says "pre-trial conference. Something else that I find weird is that I recently called to see settlement opportunities and I was told that the account was in dispute and I would need to withdraw my dispute in-order to speak about it. Not sure why because I never disputed it but I guess my answer regarding the accounting is what they are going off of. Part of their opposition also said that I never acknowledged the debt as mine so how can I be held to the contract terms. Not really sure what direction this is going in now.

What's your next move? Did anything in that Ohio case help you?

i dont see any wording about them paying if they fail to arbirate , it only says if they purse arbitration they will absord the fees . If the debtor pursue each party pays there own way. Also Jams has closed the file for non payment

I don't believe JAMS will refund a $250 filing fee unless a case with withdrawn shortly after it's filed. They've invested administrative time into the case, so they need to be compensated. What does your agreement say with regard to payment of arbitration? In my first arbitration case against a JDB, the agreement said the JDB had to reimburse my arbitration costs if they failed to arbitrate.

Thanks just waiting on the email . I wonder if they will refund the 250 . I will check out the case

You'll have to be patient until you receive the communication from JAMS that says something to the effect that the matter has been administratively closed for non-payment. I did some digging and found a case in Ohio that may be helpful to you: https://law.justia.com/cases/ohio/eighth-district-court-of-appeals/2023/111666.html

So it’s getting close to the deadline to pay up or the jams file is closed and velocity hasn’t paid up. I assume the next step is to file a motion to dismiss with Prejudice

You're still not answering my question. If the judge grants your leave, how would you amend your answer? Keep in mind that Velocity will receive a refund of all unused fees paid for the arbitrator. They could go through the discovery process, file a Motion for Summary Judgment, and win this with minimal billable time from the arbitrator. As I mentioned before, don't assume Velocity doesn't have this documentation. They do. If you're OK having a judgment over your head, then there's nothing to worry about. Two won and one settled.

If Velocity were able to successfully argue your claim or even your response to their counterclaim was frivolous or intended solely to cause unnecessary delay, an arbitrator could award arbitration fees, costs, and attorney's fees. This is a real possibility if you don't do things right, so I wouldn't discount it.

yes for AAA they do not make consumers unless they find the claim was filed for harassment or frivolous. Which if there is no reasonable factual basis or legal basis at all during arb.

its in superior court and there wasn't a bill of sales included just the last billing statement

The arbitration provision specifically allows Velocity to recover their arbitration fees if the arbitrator decides the claim was frivolous. In addition, the arbitrator can award attorney's fees and other expenses based on applicable law. California Code of Civil Procedure §§ 128.5 and 128.7. Section 128.5 permits a court to order a party, attorney, or both to pay reasonable expenses, including attorney’s fees, resulting from bad-faith actions or tactics that are frivolous or intended solely to cause unnecessary delay. Here's that section of the arbitration agreement: The cases involving Portfolio Recovery may not have involved an arbitration provision with this clear, specific language.

I don't think this is allowed in California. We have seen some cases involving Portfolio Recovery, which is notorious for going all the way in arb and seeking to charge the consumer with the fees, where they do not do this in CA.

How would you actually amend your answer? What exactly would you add to it? Your fees don't matter here. The objective is to put Velocity in a position where they need to pay as much money as possible in pursuit of this $10K debt. AAA's fees are much less than JAMS, keeping their arbitration expenses lower. What "real contract clause" are you using here that says your claim wouldn't be "fake"? When you file a Demand for Arbitration, you need to state a claim. What would your claim be? What is your defense against the amount they're seeking? You need answers to all these questions. I helped my friend in arbitration on a case for less than $7K in JAMS where the other party had to pay more than $7K in arbitration costs, fees, and the retainer. She ended up settling - a settlement that required the other side to write her a nice check for FDCPA violations and damages. Being judgment proof doesn't mean the debt disappears. If Velocity obtains a judgment against you, the legal obligation to pay remains and will hang over your head for quite some time. I've been involved in three arbitration cases, all of which were with JAMS. I don't have any experience with Velocity.

They said it was superior court.

Is the lawsuit in Limited Civil court?

You’re right about the AAA fees, but I'm low income and my fees get waived. The Citibank contract says they cannot make me pay their arbitration fees if I lose, unless my claim is fake. Using a real contract clause isn't fake, but I need to figure out my defenses since I have time now to request during arb. I read some articles about success in California against them. Hopefully it works in my favor. But I think for a $10K debt, it is still low to fight me in arb, in reg county court yes it's a lot. I'm probably judgement proof too so maybe they will look at it as even if we win how long will it take for us to get the money. Have you been sued by them or someone you know? Thank you for taking your time to respond to me, it gives me a different perspective on this and how i should proceed.

I would have to ask the plantiff attorney if they will allow me too, if not i have to file with the court and ask judge.

Velocity is going to have more than just a Bill of Sale. The Bill of Sale is what proves standing in order for them to sue you. I'm sure they have the statements they need to substantiate how much is owed on the account. It's a huge mistake to assume they don't. Filing an MTC and getting this moved to arbitration won't make this go away. Based on the clear language in your arbitration provision, you may put yourself in jeopardy of Velocity being awarded $10K against you, in addition to a few thousand more in arbitration costs, fees, and attorney's fees. I personally wouldn't take that chance unless I had a legitimate defense (i.e. the amount they're seeking is incorrect and you can prove it by producing bank statements and other documentation). When was the last payment made on the account?

I mean I would want them to prove it because they only sent me a BOS page and nothing else. Yes that is the one

How would you amend it? @nobk4me told you how you should respond to discovery earlier today: For answering their discovery, I would recommend this response: OBJECTION. Arbitration has been elected, and a jurisdictional motion is pending before the court. Scope of discovery is to be determined by the arbitration forum. See my previous post.

"Prove you own this debt" really isn't a defense. Velocity will have documentation that shows they purchased the debt from CitiBank. They'll also furnish copies of statements. This will prove standing, as well as the balance owed. I looked up a credit card agreement for CitiBank to see what the arbitration provision looks like. I would check yours to see if it includes the following paragraph: This paragraph specifically allows an arbitrator to award reimbursement of their arbitration fee if the arbitrator finds your claim was frivolous. According to the last sentence, the arbitrator could award Velocity reimbursement of additional expenses, including attorney's fees, if it's allowed by applicable law. California Code of Civil Procedure §§ 128.5 and 128.7. Section 128.5 permits a court to order a party, attorney, or both to pay reasonable expenses, including attorney’s fees, resulting from bad-faith actions or tactics that are frivolous or intended solely to cause unnecessary delay. If your card agreement says arbitration must be through AAA, Velocity's upfront costs will be much less. For example, with JAMS, Velocity would be required to pay $2,500 to file a counterclaim. AAA doesn't charge a separate fee for a counterclaim. Looking at AAA's fee schedule, the business will pay: $375 Filing Fee $1,400 Case Management Fee $500 Hearing Fee (if it gets that far) $300/Hour Arbitrator Compensation

should i include in the discovery answers along the lines of seeking information that will be presented during arbitration?