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Arbitration Clause


Georgie
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Hello.  I had a loan with Springleaf.  I became seriously ill and lost my job.  I had to move in with my adult daughter.  Springleaf charged off the debt, but jdb Cach, LLC picked it up and have filed suit.  My question is this:  My contract with Springleaf had an arbitration clause in it.  Does that clause apply to Cach, LLC too?  I have filed an Answer and received an order to produce and interrogatories.  I'm trying to proceed cautiously.  By the way, before Springleaf charged the debt off, they asked why I missed two payments.  I told them the situation and they said not to worry, they were going to charge it off and not collect.  Probably doesn't make a difference because I cannot prove they made that statement. 

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14 hours ago, Georgie said:
 

Hello.  I had a loan with Springleaf.  I became seriously ill and lost my job.  I had to move in with my adult daughter.  Springleaf charged off the debt, but jdb Cach, LLC picked it up and have filed suit.  My question is this:  My contract with Springleaf had an arbitration clause in it.  Does that clause apply to Cach, LLC too?  I have filed an Answer and received an order to produce and interrogatories.  I'm trying to proceed cautiously.  By the way, before Springleaf charged the debt off, they asked why I missed two payments.  I told them the situation and they said not to worry, they were going to charge it off and not collect.  Probably doesn't make a difference because I cannot prove they made that statement. 

Yes, it wouldn't make any such difference as one may not prove that they have made that statement.

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In reply to firsthardcheese, I am in California.  I read the local court website regarding arbitration and it seems as though the plaintiff is the only one who has the option to initiate the request for arbitration.   Any further information would be appreciated. 

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1 hour ago, Georgie said:

In reply to firsthardcheese, I am in California.  I read the local court website regarding arbitration and it seems as though the plaintiff is the only one who has the option to initiate the request for arbitration.   Any further information would be appreciated. 

The court rules would likely only be referring to COURT arbitration, not private arbitration that would be found in your contract.

Although, if you are in CA, you should read posts by @calawyer because CA is about the only state left where court can work in your favor without dealing with arbitration.

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Actually, you can do pretty good in Minnesota Courts if you know what you are doing. The problem is, most cases do not make it into court because of the pocket docket rules. Arb should be a decent strategy here too however as you can use it to back the other side into a corner to accept a decent settlement.

For example, say you are served a pocket docket case on a contract with arb. You simply answer the case and you send the plaintiff a motion to compel arb. The state passed a law years ago where once a case is started, it must be filed within one year in the courts or the case is dismissed with prejudice. They plaintiff therefore spent money only to get a motion to compel arb back which means they will either have to spend more money in the courts only to be told to go to arb where they will have to spend even more money to get that started, let the case lapse and lose their claim completely, or come up with a settlement.

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