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30 minutes ago, Xtreme98 said:

Plaintiff now says that because I deny this debt i can not use the arbitration clause in the agreement.

Waiting on judge to decide.

 

Not an uncommon argument.  The response is that if this is the card agreement they state belongs to the account then they are bound by the terms and you are free to assert that term when they said it was the account in question.  The terms go both ways not just in their favor.

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So I agreed the account was mine because I could feel the judge and she was not gonna budge. I told her that the balance they were asking for was incorrect. She said that falls well within the arbitration clause and granted me a Stay for 60 days to get everything setup. I tried not to admit to anything but I feel I had no choice at that point. She was determined to keep it in that court. Maybe it will not hurt me too bad. I just didn't really know what to do. I wish i could have seen this post 30 mins ago.

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1 hour ago, Xtreme98 said:

So I agreed the account was mine because I could feel the judge and she was not gonna budge. I told her that the balance they were asking for was incorrect. She said that falls well within the arbitration clause and granted me a Stay for 60 days to get everything setup. I tried not to admit to anything but I feel I had no choice at that point. She was determined to keep it in that court. Maybe it will not hurt me too bad. I just didn't really know what to do. I wish i could have seen this post 30 mins ago.

You did fine.  You got a stay to get into arbitration.  That is pretty much the best you could hope for with this judge.

Now, file in arbitration.  Send copies of your filing in arbitration to the opposing attorney, of course.  

You will also need to send the judge some proof that you filed in arbitration.  When you get a response from the arbitration forum that the case is open, send a copy to the court.  That shows you did your part.  

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@Xtreme98,

You did FINE in getting the stay.

Just out of curiosity, in showing how Plaintiff attorney abused 'Rule 41,' did you bring up the fact that, while she said she did NOT have time to continue with your case for more than a year because of "ongoing family emergencies, covid," and a litany of other excuses, STILL had time to file and proceed with HUNDREDS of other cases in a 3 or 4 state area?  That alone shows there is no "good cause" for the case to continue on the docket (as Rule 41 states).

Plus, you didn't claim that 15 months was a 'substantial' amount of time -- just that this 'time-challenged' attorney did 'ZIP' for more than a year with your case, citing no time.  But her actions are clearly different!   She's being extremely disingenuous -- excuses that don't match her actions.  I don't understand why a judge would not see that too.  Oh well, common sense and law are rarely equal.

If it's any consolation, even if the judge would have dismissed the case, I'm positive it would have been 'without prejudice,' allowing the Plaintiff attorney to simply re-file the case again.

You got this though!  Congrats!

Jimmy

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21 hours ago, Xtreme98 said:

Plaintiff now says that because I deny this debt i can not use the arbitration clause in the agreement.

Waiting on judge to decide.

 

@Xtreme98,

Re-read your original answers to their complaint.  I would argue that the denials you provided simply showed you owe JDB 'Velocity Investments' exactly:  JACK SQUAT!

The first two statements on their complaint establish who they are, and where you live.  The THIRD is that you entered into agreement with 'X Company,' which, QUOTE "has heretofore been assigned and sold to Plaintiff."  ALL other statements build from the third statement.  I would argue that DENY is correct because you have no idea that 'X Company' is an assignee of 'Y Company' -- and sure as heck can't admit that all of this has been sold to 'Velocity Investments!'

This is buttressed by the fact that you quickly filed to ARBITRATE.  One can't arbitrate without their being an account.  Why else ask to arbitrate??  It lends further credence for the reason you DENY plaintiff's third statement, as mentioned above.

Sorry for the ramble.  I just read what the Plaintiff submitted on June 24, 2021 -- the 'why the judge should not allow arb,' and I had to comment.

Jimmy

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Jimmy you are very accurate. I did get a little beside myself and I have a very passive side so no i didn't call out all the obvious facts. I was told both times i brought up Rule 41 that "it does not apply and that we have moved past that"! The judge did a conference call yesterday afternoon about the document the Plaintiff submitted. I was shocked she would have put the last couple of statements about a time frame in there. Kinda chuckled at that! She was not happy that i denied everything they sent and told me that wasn't going to work moving forward and that she(the judge) would make sure i answered them. Either way arbitration has been granted and that's where we are. I am so thankful for everything everyone has contributed. You guys/gals are awesome.

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  • 2 months later...

OK. So i finally got everything filed with Jams and the fee has been paid. It took way longer than it should have because all my emails were sent to the junk folders and they kept telling me they were not receiving them. After just over a month they figured out the issue. SMH. My question is this. Do i submit an offer or do i just wait? I was reading through the Arbitration guidelines that are posted on this site and it was an option. I would just like to get some opinions on that. As far as i can tell the JDB has not paid anything as of yet. They have requested $1500 non refundable fee from them though to get started.

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On 8/31/2021 at 1:45 PM, Xtreme98 said:

OK. So i finally got everything filed with Jams and the fee has been paid. It took way longer than it should have because all my emails were sent to the junk folders and they kept telling me they were not receiving them. After just over a month they figured out the issue. SMH. My question is this. Do i submit an offer or do i just wait? I was reading through the Arbitration guidelines that are posted on this site and it was an option. I would just like to get some opinions on that. As far as i can tell the JDB has not paid anything as of yet. They have requested $1500 non refundable fee from them though to get started.

@Xtreme98, if I'm not mistaken, you are to file a status letter with the court by Sept 8 -- that's this Wednesday!  I would file the letter proving you've initiated arbitration, then evaluate from there.  The alternative is the judge will lift the 60-day stay and Plaintiff will just proceed with the court litigation.

I have almost zero experience with arbitration (only what I've gathered over the years on this site), but believe others would also say wait -- at least until you see if Plaintiff is going to pony-up their greater part of the money to JAMS.  They HATE doing that, and may pass altogether.

Good luck!

Jimmy

 

 

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@Xtreme98, I just wanted to add that the more I see what you have done, the bottom line is the Plaintiff MUST participate in the arbitration that you set up by the time the judge is expecting to see that you have initiated arbitration.

At MOST, imo, the Plaintiff may argue you did not get things set up in arb within the 60-day timeframe.  The judge signed the delay on June 28.  You say you got everything filed with JAMS.  What date??

Worst-case on taking more than 60 days could be 'covid,' or similar argument Plaintiff used for waiting more than a FULL year to continue litigation.  Either way, Plaintiff or court may not bring up a delay of a few days on either side.  But, just in case, you can provide the same answers Plaintiff gave for delaying litigation.

Assuming you get your JAMS filing to the court (and copy to Plaintiff) by September 8, you should be in good shape!

At that point, Plaintiff MUST show they have participated in JAMS arbitration or NOT.  Odds are Plaintiff is not going to pay the large fees mandatory by JAMS -- though, technically, they COULD.

At this point you go one direction IF they lay out $ to enter arbitration, or another if they don't.

If they do NOT pay fees to arbitrate, then at some point JAMS will close the case because of non-payment by Plaintiff.  That would be ideal, and IMO what they will likely do (or in this case, NOT do)!

Bottom line, you are in a great position because Plaintiff has to either 'put up or shut up.'  At most, they throw a lot of money to join arbitration.  At any point you can make a settlement offer if you want.  Either way, once in arbitration, the MOST you would ever pay is a smaller, negotiated amount.  Certainly a LOT less than if litigated in court, imo. 

The thing is, the original creditor has an arbitration clause to avoid potential class-action lawsuits.  It's easier for OC to handle single cases (even if they have to pay) than it would be for a potential class-action.  This is 'kryptonite' to the JDBs because they file suits against individuals (hundreds or thousands in a single court district).  BUT, since they 'bought' the alleged debt, they also bought the CONTRACT from the OC.  The JDB steps into the shoes of the OC, which means they must legally abide by the OC's fine print -- including arbitration.  Hope that makes sense!

Best,

Jimmy

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@Jimmy E I sent everything to the attorney on the 29th of July when I originally filed for Arb. The email system at jams was flagging my email as spam.  So it did not actually get filed until the 25th of August. But they were notified the day i filed it via USPS. Also JAMS has send Proof of Service to both of us. You are correct that the Stay is up on the 8th. I submitted everything to the court this morning.  They have until the 9th to pay their fee so I'm not real sure how that will work. Maybe the judge will check back to see if its been paid. I paid mine the next day when they invoiced me. I would assume that we are in Arbitration at this point which is what the judge asked for. 

 

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23 hours ago, Xtreme98 said:

@Jimmy E I sent everything to the attorney on the 29th of July when I originally filed for Arb. The email system at jams was flagging my email as spam.  So it did not actually get filed until the 25th of August. But they were notified the day i filed it via USPS. Also JAMS has send Proof of Service to both of us. You are correct that the Stay is up on the 8th. I submitted everything to the court this morning.  They have until the 9th to pay their fee so I'm not real sure how that will work. Maybe the judge will check back to see if its been paid. I paid mine the next day when they invoiced me. I would assume that we are in Arbitration at this point which is what the judge asked for. 

 

@Xtreme98, yeah, you're in good shape.  As I've said before, what I know about actual arbitration, you could fit in a thimble!  If I were you, I'd check with the court clerk on maybe the 10th to see if Plaintiff has submitted its letter to court as instructed by the judge.

More importantly at this point, since you are officially "in" arbitration with the blessing of the court, it now turns to whatever deadlines JAMS has for Plaintiff paying its fee.  Do you know if there is a hard deadline for them to do this??

Just in case they don't follow you into arb, I'd be working up a MTD -- worded and presented properly to get the case dropped (hopefully WITH prejudice)!

Good luck!

Jimmy

 

 

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@LaneBlaneThe account in question is personal.

 

@Jimmy EI dont see a hard deadline per say but it does say if the fees are not collected the arbiter will drop the case. Its a bit confusing really. I have read a few different things but from JAMS it says it will be dropped. It doesn't say when or how long after payment isn't received though. At least that i have found yet. Still reading and searching. I like that you are always a step ahead. I will work on the MTD just in case.

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8 hours ago, Xtreme98 said:

@LaneBlaneThe account in question is personal.

 

@Jimmy EI dont see a hard deadline per say but it does say if the fees are not collected the arbiter will drop the case. Its a bit confusing really. I have read a few different things but from JAMS it says it will be dropped. It doesn't say when or how long after payment isn't received though. At least that i have found yet. Still reading and searching. I like that you are always a step ahead. I will work on the MTD just in case.

 

@Xtreme98, as I said, I know NOTHING about arbitration, but did want you to put the following comments aside (to use if you need to) in case Plaintiff does NOT follow you into arb.  I cut/pasted from a different section of this forum:....

---------------------------------------------------------

The party to a terminated arbitration (YOU) should request an order from the arbitrator spelling out in detail the grounds of the termination and the effect such termination should have on later proceedings.  Such an order should be requested prior to the issuance of the arbitrator’s termination order, as such an order could be construed to divest the arbitrator of jurisdiction.

---------------------------------------------------------

In other words, in case it helps, if the above can help you keep jurisdiction with the arbitrator (arb company), all the better if any kind of 'new' suit is filed on this alleged account.  I hope others on the forum who have more experience with arb will comment.  While the potential 'termination' of arb comment above makes sense to me, perhaps others can offer other/additional advice for what to keep in mind 'down the road.'

Best,

Jimmy

 

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The court case was closed today (without prejudice). Arbitration is full go. Still waiting on Velocity to pay their portion of the fee. They had a September 9th deadline but requested an extension. It is now due on the September 23rd. Still not sure what happens if they don't pay.

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1 hour ago, Xtreme98 said:

The court case was closed today (without prejudice). Arbitration is full go. Still waiting on Velocity to pay their portion of the fee. They had a September 9th deadline but requested an extension. It is now due on the September 23rd. Still not sure what happens if they don't pay.

I have been in a similar situation. 
 

If they don’t pay the case is closed in arbitration.  
 

If that happens you have almost certainly won, since the case was already dismissed without prejudice. 
 

If you want, you could file a motion with the court, showing the arbitration records, to change the status to dismissal with prejudice.  

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3 hours ago, BackFromTheDebt said:

If you want, you could file a motion with the court, showing the arbitration records, to change the status to dismissal with prejudice.  

would this be under a request for sanctions as the case was not heard on the merits. 

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Since JDB paid the "initial fee" to follow @Xtreme98 into JAMS arbitration, I'm curious to know if (short of frivolous or absurd filings in arb), has there been any kind of precedent or consensus as to whether or not a CONSUMER must pay more than the initial filing fee WIN or LOSE (not including California of course)?  I think JDB's initial fee to technically get things going is $1500.

If there's no 'smoking-gun' wins for consumer, does anyone have an opinion on strategies for tossing in legal (or legitimate) "monkey wrenches" into the arbitration works?

Best,

Jimmy

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So we received the list of arbiters on Thursday afternoon. Some have hourly and some have daily fees. Hourly is $550 and daily fees are $5000 and $7000.  It seems like the daily fee would be the desired fee but please tell me if i am missing something. We have until October 1st to decide. So if anyone has any opinion on this please let me know.

@Jimmy E You are right the initial fee was $1500 which was paid as the 23rd. I too am interested in "monkey wrenches" that would make it hard or less likely to continue. 

JDBs lawyer did reach out on Saturday morning to ask if i had chosen an Arbiter yet. Kinda surprised seeing as how slow they were about everything else.

 

 

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