Another Arkansas Appellate Decision Regarding MNBA America Arbitration Provision
The Arkansas Court of Appeals reversed a refusal to confirm arbitration award in MBNA America Bank, N.A. v. Gilbert, No. 06-1324 (10/31/07). This is the third case in a recent series involving an arbitration provision used by MBNA America. See MBNA America Bank., N.A. v. Blanks (previously posted (9/20/07); Danner v. MBNA America Bank, N.A. (previously posted 4/27/07).
The arbitration provision is a letter MBNA sent to consumers that purported to unilaterally amend the cardholder agreement to include an arbitration provision. Gilbert did one thing different from the other parties: he filed a response with the arbitration forum, arguing that the arbitration provision was not a valid agreement. The forum entered an award for MBNA. Then he failed to challenge the award within 90 days as required by the Federal Arbitration Act.
The court of appeals held that filing the response meant Gilbert participated in the arbitration. Gilbert waived any defenses by participating in the arbitration proceeding and then failing to comply with the Federal Arbitration Act. The court reversed and directed the trial court to confirm the arbitration award.
