No. 21-1188

Portfolio Recovery Associates, LLC v. Iris Pounds, et al.

Lower Court: North Carolina
Docketed: 2022-02-28
Status: Denied
Type: Paid
Experienced Counsel
Tags: arbitration-rights assignee-rights assignees contract-law discrimination-against-arbitration evidentiary-burden federal-arbitration-act preemption third-party-beneficiary
Key Terms:
Arbitration ClassAction JusticiabilityDoctri
Latest Conference: 2022-06-02
Question Presented (AI Summary)

Whether the FAA preempts a state rule of contract law that requires assignees seeking to enforce arbitration rights to meet a higher evidentiary burden than is needed to enforce other contractual rights

Question Presented (OCR Extract)

QUESTION PRESENTED The Federal Arbitration Act prohibits contract-law rules that discriminate against arbitration, as this Court has held again and again. See, e.g., Epic Sys. Corp. v. Lewis, 1388 S. Ct. 1612, 1622 (2018); Arthur Andersen LLP v. Carlisle, 556 U.S. 624, 631 (2009). Yet the guerrilla war on arbitration wages on. Here, the state courts created a novel rule of contract law that discriminates against arbitration rights exercised by assignees. Those courts held that an undisputed assignee could not enforce undisputedly valid arbitration agreements without presenting evidence of “additional intent by the original creditors to assign” the right to arbitrate to the assignee. Pounds v. Portfolio Recovery Assocs., LLC, 851 8.E.2d 423, 431 (N.C. Ct. App. 2020). The question presented is: Whether the FAA preempts a state rule of contract law that requires assignees seeking to enforce arbitration rights to meet a higher evidentiary burden than is needed to enforce other contractual rights. ii RULE 29.6 DISCLOSURE STATEMENT Petitioner Portfolio Recovery Associates, LLC is a Delaware limited liability company that has one member, PRA Group, Inc., which is a publicly held corporation. As the sole member, PRA Group, Inc. holds more than 10% of Portfolio Recovery Associates, LLC’s stock.

Docket Entries

2022-06-06
Petition DENIED.
2022-05-17
DISTRIBUTED for Conference of 6/2/2022.
2022-05-16
Reply of petitioner Portfolio Recovery Associates, LLC filed. (Distributed)
2022-04-27
Brief of respondents Iris Pounds, et al. in opposition filed.
2022-03-17
Motion to extend the time to file a response is granted and the time is extended to and including April 29, 2022.
2022-03-16
Motion to extend the time to file a response from March 30, 2022 to April 29, 2022, submitted to The Clerk.
2022-02-24
Petition for a writ of certiorari filed. (Response due March 30, 2022)
2022-01-20
Application (21A344) granted by The Chief Justice extending the time to file until February 24, 2022.
2022-01-14
Application (21A344) to extend the time to file a petition for a writ of certiorari from January 25, 2022 to February 24, 2022, submitted to The Chief Justice.

Attorneys

Iris Pounds, et al.
Jason Andrew PiklerNorth Carolina Justice Center, Respondent
Richard Brooks GlazierNorth Carolina Justice Center, Respondent
Portfolio Recovery Associates, LLC
Brian David SchmalzbachMcGuireWoods LLP, Petitioner