Can Legit Account Arb Be Enforced Against Imposted Claim?

Identity Theft, Account Takeover, Unauthorized Use, Misuse, Apparent Authority, Authorized Use.
David A. Szwak

Can Legit Account Arb Be Enforced Against Imposted Claim?

Postby David A. Szwak » Tue Nov 29, 2005 9:33 pm

Issue 2: Can Defendant Claim That Plaintiff’s Legitimate Account Contract Terms and Conditions Be Applied to a Lawsuit Arising Over an Imposted Account or an Account of Another Consumer?

As stated above, the only known case on point where defendant tried this end run was in Riley v.GMAC, cause no. 1:01-CV-00869-WS-D [U.S.D.C. S.D. Ala. 12/16/02]. On December 16, 2002, docket entry #106, Judge Granade entered an unreported Order denying Discover’s Motion to Compel Arbitration, and Motion to Stay Discovery. Judge Granade found that the victim did not consent to any such arbitration clause and arbitration cannot be enforced absent an agreement to arbitrate. Discover tried to argue that because Riley had his own legitimate Discover account and that application/contract contained an arbitration clause, that somehow the court should apply that arbitration clause to a dispute and lawsuit involving the imposted credit application and account.

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