On May 4, 2016, Gordon & Rees Orange County partner Sean P. Flynn obtained another favorable ruling for a debt collector client in California State Court. The Court granted their client’s Motion to Compel Arbitration and Dismiss Plaintiff’s Class Action for alleged violation of California’s Fair Debt Buying Practices Act.
In the client’s Motion to Compel Arbitration and Dismiss, Gordon & Rees argued that there was an enforceable arbitration clause Plaintiff had executed with the underlying creditor, and that the firm’s client, as the buyer of the delinquent debt, stood in the shoes of the underlying creditor and had standing to enforce the Arbitration Clause and Class Action Waiver.
The plaintiff vigorously contested the motion, with multiple ancillary motions and a deposition, but ultimately the judge agreed that Gordon & Rees’s client had standing to enforce the Arbitration Clause and Class Action Waiver. As such, the Court granted the motion, dismissed the Class Action claims and stayed the individual claim pending the outcome of Arbitration.