Upholds dismissal of bank’s application to confirm arbitration award regarding credit card debt

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Plaintiff-Appellant MBNA America Bank, N.A. (“MBNA”) appeals from the trial court’s order denying and dismissing with prejudice its application to confirm an arbitration award against Defendant-Appellee Aaron Kay. MBNA presents several issues for our review; however, the following issue is dispositive:  Whether the trial court erred by dismissing, with prejudice, MBNA’s application to confirm the arbitration award.
Conclusion (slip op. at 7):  The trial court did not err by dismissing MBNA’s application to confirm the arbitration award. Once Kay objected to the arbitration, MBNA was required by the FAA to obtain a federal court ruling regarding the validity of the arbitration agreement. Affirmed.
Key Analysis (slip op. at 7):  The FAA provided that upon Kay’s objection to the arbitration, MBNA was required to petition a federal court for a determination regarding the validity of the arbitration agreement. This was not done. Instead, the NAF attempted to rule on the validity of the arbitration agreement at issue. As a result, the award MBNA sought to confirm was void, or incapable of confirmation or ratification. The trial court’s order was not erroneous to the extent that it, in essence, vacated the arbitration award.

About Bose McKinney & Evans LLP

Bose McKinney & Evans LLP is a business law firm, headquartered in Indianapolis, Indiana, serving both publicly held and privately held businesses, governmental entities and high-growth industries. Our clients include Fortune 100 companies, international manufacturers, national and regional financial institutions, agribusinesses, sports teams, university-incubated start-ups, media, utilities, cities and schools, to name a few. We strive to build strong relationships with our clients as key business advisors, to exceed expectations in the quality of our work, to be knowledgeable about our clients’ businesses and sectors, to be responsive to service needs and to continually seek to improve the delivery of client services. Our ultimate focus is on our clients.
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