Help with arbitration cost

[Enzo]

Hey everyone first post been on the forum all night looking for an answer hopefully some one can help!

Back ground:

Being sued by lvnv 

OC credit one

$1,000

In Arizona

They have filled MSJ

For breach of contract & account stated

I have two questions main question 

1). In my Arbitration agreement it says each party shall bear their own expenses then it say the arbitrator shall require you to pay us collection cost including attorney fees.  As a result of your default

(I can upload the page or be more clear on this if need just trying to keep it short)

Does this mean that they attorney fees will be add on to judgment if I lose arbitration so debt $1k +$5k attorney fee 

I did read here somewhere that the total can't be more then the original debt is this true 

2). The MJS is for

a. breach of contract

say that because I used the card I agree to the terms 

b. Theory of account stated basically I didn't contest the amount due 

My question is wouldn't this create two separate contracts on the same debt the first is a written contract SOL is 6yrs the second is stated SOL 3yrs and has passed

Any thoughts on how to respond to this. 

Thanks in advance

 

[Clydesmom]

3 hours ago, Enzo said:

Does this mean that they attorney fees will be add on to judgment if I lose arbitration so debt $1k +$5k attorney fee 

Yes it means they can ask the court or arbitrator to award attorney fees in addition to the $1000.  

3 hours ago, Enzo said:

I did read here somewhere that the total can't be more then the original debt is this true 

It is not accurate.  Most states have laws in place that state attorney fees must be "reasonable" for the case as tried.  If you do arbitration reasonable attorney fees could be a lot more than $5k if it goes all the way through the process.  If it is a case in small claims court the fees would likely be around $750.

3 hours ago, Enzo said:

My question is wouldn't this create two separate contracts on the same debt the first is a written contract SOL is 6yrs the second is stated SOL 3yrs and has passed

No.  It creates two claims not two contracts.  One account in default = One contract.  The 6 year SOL on credit card debt in AZ applies.

3 hours ago, Enzo said:

Any thoughts on how to respond to this. 

You need to file an answer and an opposition to their MSJ.  You can try a MTC arbitration but CreditOne has a carve out clause in their card agreements prohibiting arbitration for debt cases filed in small claims court.  You would need to be prepared that the motion would be denied and that you would then have to defend the suit.

[Enzo]

It's my understanding that it is no considered small claims court in Az and that attorneys are not allowed to represent in small claims court here

[Enzo]

I'm seeing so many people in this forum focus on the motion to arbitration but I can't understand why if all fees would be placed on them if they lost no one has mentioned this seems a lot of people would make their situation much worse with out this discussion

[Bulldoger]

rule to respond:

Rules for Justice Court (30 days) from service. 

https://govt.westlaw.com/azrules/Document/N6F4945F00DDE11E2B1BB87D5DA3B811F?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)

On 12/31/2021 at 5:19 PM, Enzo said:

I'm seeing so many people in this forum focus on the motion to arbitration but I can't understand why if all fees would be placed on them if they lost no one has mentioned this seems a lot of people would make their situation much worse with out this discussion

 Other than spending hours reviewing court procedures, case law, rules of evidence etc.. or paying $5000 to an ATTY to take the case to trial what are the alternatives. 

1) pay full amount 

2) settle for less than full amount

Arbitration helps with no. 2 case can always be settled either in courts or arbitration. 

[Enzo]

49 minutes ago, Bulldoger said:

rule to respond:

Rules for Justice Court (30 days) from service. 

https://govt.westlaw.com/azrules/Document/N6F4945F00DDE11E2B1BB87D5DA3B811F?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)

 Other than spending hours reviewing court procedures, case law, rules of evidence etc.. or paying $5000 to an ATTY to take the case to trial what are the alternatives. 

1) pay full amount 

2) settle for less than full amount

Arbitration helps with no. 2 case can always be settled either in courts or arbitration. 

@Bulldoger hey bulldoger thanks Im planning on using arbitration for this purpose I was just worried if I lost in arbitration I would have to pay the JDB attorney fees but of course if I settle that shouldn't be an issue hopefully at least that's what I got so far. I'm always open to new ideas or info on the situation

[Bulldoger]

I don't know how arbitration works in AZ.  Check AZ statutes and court cases. In Florida you have to list it as a defense in your answer. In my state VA you have to motion for Arbitration before two much litigation has occurred that's a judgement call by the Judge.  Some states once you done discovery your MTC will be denied. 

Some CC contract will state you can motion/elect arbitration up to trial date that may help if yours state that. 

Since Plaintiff has filed a MSJ they are stating that all the facts have been presented and they clearly show they are entitled to a judgement without a trial. 

The Judge may this point rule the MTC untimely as it is unfair and a burden to the Plaintiff having expended cost and effort to get to MSJ and deny a MTC.  

 

 

[Enzo]

How do you quote reply ? new to all this lol but either way I did find case law for az and will attach it w my mtc it basically says that I can file pretty much anytime I become aware it's an option under contract and that the judge should grant it or go against the case law and appeal approving it. Thanks for your reply not a lot of traction on this post but I appreciate what I get and I'll keep updating

[teriphann]

Yes, of course, they can ask the court or the arbitrator to pay attorneys' fees in addition to the thousand dollars. I don't know the exact figures, it depends very much on many factors. Two contracts separately also cannot be created in any way, a 6-year contract will remain. In order to get out of this difficult situation, I advise you to contact financial specialists https://barkersprocurement.com/services/cost-transformation/. They will argue the specifications of contracts, products and services within the business, which will help you, firstly, to make more money, and secondly, you will have to pay less.

[Around The Fur]

I am confused about attorney fees / arbitration costs as well, particularly with JAMS. The language makes it seem the consumer is only liable for the initial filing fee. What is the likelihood the consumer will be responsible for opposing party's arbitration costs in the event of unfavorable judgment? 

[Bulldoger]

11 minutes ago, Around The Fur said:

I am confused about attorney fees / arbitration costs as well, particularly with JAMS. The language makes it seem the consumer is only liable for the initial filing fee. What is the likelihood the consumer will be responsible for opposing party's arbitration costs in the event of unfavorable judgment? 

Depends on the written agreement if it allows for it or not. 

 

[Bulldoger]

catlady22 was access PRA fees because contract stated "If we prevail, we may not recover our arbitration fees, unless the arbitrator decides your Claim was frivolous.” In her case since She had received all the statements at her address for the amount PRA was suing for it was patently frivolous.  IMO she could have appeal and won but it better in her situation to file for bankruptcy which she did.  Somebody else got awarded arbitration fees but got them thrown out on appeal. 

check the contract for what state law prevails (should be the one your using for arbitration) see if they can get attorney fees in that state or if agreement states they can recoup attorney fees. 

check contract for clause giving arbitrator leeway in adding arbitration fees to award. 

that said I am not aware of JAMS awarding Arbitration fees not saying it's not possible.