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Asset Acceptance LLC v. Wheeler

The trial court properly vacated an arbitration award, which was issued into a hearing and without prior notice.

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Asset Acceptance, LLC, appeals the trial court’s order vacating an arbitration award for failure to comply with the procedures set forth in the Georgia Arbitration Code, codified at O.C.G.A. § 9-9-1 et seq. We affirm. The record shows that Asset Acceptance filed a claim with the National Arbitration Forum the “Forum” against appellee Stephanie Wheeler to recover credit card debt that Ms. Wheeler allegedly owed. On December 13, 2006, the arbitrator entered an award in favor of Asset Acceptance in the amount of $38,904.35, without holding a hearing. On February 5, 2007, Asset Acceptance filed an action to confirm the arbitration award in the Superior Court of Gwinnett County. The court held an initial hearing on the matter on January 22, 2008, but continued the case to allow appellee to gather evidence. At the final hearing on the matter, which was held on March 6, 2008, the evidence showed that appellee received a notice of arbitration via statutory overnight delivery on October 30, 2006; that appellee responded in writing on November 29, 2006, contesting the arbitration and asking for verification of the amount allegedly owed; and that Asset Acceptance mailed a response to appellee’s letter to the arbitrator and appellee on December 12, 2006, in which it stated that appellee was bound to arbitrate the dispute because arbitration clauses were added to the credit card agreements in 1999, which is the year that appellee opened her account. On the following day, the arbitrator rendered the award.

The trial court noted that on its face the award provided that Wheeler was to receive a second notice of arbitration from the Forum and that an arbitration notice was duly delivered to the parties as required by the Forum Rules. When asked if these notices had been delivered, counsel for Asset Acceptance indicated that he did not know. The trial court concluded that appellee had not received proper notice.

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