On December 20, 2012, the Georgia Court of Appeals granted
an application for interlocutory appeal filed on behalf of a debt settlement
company by Richard J. Capriola and David B. Weinberg, commercial litigation and
class action defense attorneys at Winter Capriola Zenner, LLC (“WCZ”). In doing so, the Court of Appeals took an
uncommon action and agreed to review a trial court’s denial of a motion to
compel arbitration in the middle of the litigation instead of waiting until a final
judgment in the case.
The issue in the
appeal addresses whether the Federal Arbitration Act preempts a Georgia trial
court’s ruling that statutory claims under Georgia’s Debt Adjustment Act,
O.C.G.A. § 18-5-1, et. seq., do not
have to be arbitrated even though the plaintiff entered into a debt adjustment
contract containing a broad arbitration provision applying to “all disputes or
claims.”
If the Court of Appeals
reverses and directs the trial court to enforce the arbitration agreement, the
putative class action lawsuit will be dismissed and the matter will be referred
to the American Arbitration Association, (“AAA”) for arbitration as provided in
the parties’ agreement.
As in many of the almost 20 Georgia debt adjustment class
action lawsuits WCZ has defended, the issue of arbitration agreements is a
threshold defense which has been consistently and successfully asserted to
compel the parties to arbitration as they agreed.
“We believe the law clearly supports the enforcement of
arbitration provisions in debt settlement and similar consumer contracts, and
we look forward to the Court of Appeals clarifying this important issue for
litigants and trial courts” said Capriola.
“The United States Supreme Court, Georgia Court of Appeals and the 11th Circuit
routinely reverse trial courts’ denials to compel arbitration just like the one
in this case, and we are prepared to appeal this matter until we achieve
justice for our client” added Weinberg.
A ruling is expected before the end of 2013. Check back here or contact WCZ for updates.
For further information, please contact Winter CapriolaZenner LLC, Atlanta, Georgia. (404) 844-5700 or email David or email Rich.