Gibbs-Bolender v. CAG Acceptance, LLC

Full title: MARY GIBBS-BOLENDER, Plaintiff, v. CAG ACCEPTANCE, LLC, Defendant.

Court: UNITED STATES DISTRICT COURT DISTRICT OF NEVADA

Case No. 2:14-CV-01684-APG-GWF

Date published: Feb 18, 2015

Fact:

Plaintiff Mary Gibbs-Bolender purchased a vehicle under a retail installment sales contract (“RISC”) from Chapman Chrysler Jeep, which assigned the RISC to Defendant CAG Acceptance, LLC. A device was installed on her vehicle that allows CAG to remotely disable the vehicle if she defaults on her payments. According to Gibbs-Bolender, Nevada law defines default as failure to make a payment later than 30 days past the payment’s due date. But she contends CAG remotely disabled her vehicle on several occasions before payments were more than 30 days late. Gibbs-Bolender brought this action against CAG in Nevada state court on behalf of herself and others similarly situated for various violations of Nevada law.

CAG removed the action to this Court and now moves to compel arbitration based on an arbitration agreement between Gibbs-Bolender and Chapman Chrysler Jeep providing for arbitration of any claims arising out of the vehicle purchase. CAG contends the arbitration agreement requires the arbitrator, not the Court, to decide whether the parties’ dispute is subject to arbitration. CAG also argues that even if the Court determines arbitrability, the Court should enforce the parties’ arbitration agreement and compel arbitration of this dispute. Gibbs-Bolender responds that Nevada law requires the RISC to contain the parties’ entire agreement in a single document but that the arbitration agreement at issue was not contained within the RISC. Gibbs-  Bolender thus argues that, as a matter of law, the arbitration agreement and the clause within that agreement delegating the arbitrability question to the arbitrator are void.

Issue:

Conclusion:

IT IS THEREFORE ORDERED that the Clerk of the Court shall forward a copy of this Order to the Supreme Court of the State of Nevada, 201 South Carson Street, Carson City, Nevada 89701, under official seal.

IT IS FURTHER ORDERED that all proceedings in this case are hereby stayed pending a decision from the Supreme Court of Nevada. The parties are ordered to file a status report in this court by July 5, 2015.

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