Gleason v. Al Packer, Inc. et al

Filing 24

ORDER GRANTING 10 , 11 THE DEFENDANTS' MOTIONS TO COMPEL ARBITRATION. This matter is STAYED and the parties are ORDERED to proceed with arbitration, consistent with their agreement to do so. The Clerk of the Court shall CLOSE THIS CASE and all other pending motions are DENIED AS MOOT. Closing Case. Signed by Judge Robin L. Rosenberg on 2/7/2024. See attached document for full details. (rbe)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO. 23-CV-81466-ROSENBERG
BERNARD W. GLEASON,
Plaintiff,
v.
FORD MOTOR CREDIT
COMPANY, et al.,
Defendants.
/
ORDER GRANTING THE DEFENDANTS’ MOTIONS TO COMPEL ARBITRATION
THIS CAUSE is before the Court on the Defendants’ Motions to Compel Arbitration at
docket entries 10 and 11. The Motions have been fully briefed. For the reasons set forth below,
the Motions are granted.
The Plaintiff leased an automobile. DE 1 at 1. He has brought this action under the
Consumer Leasing Act, 15 U.S.C. § 1667, contending that certain disclosures in his lease were
unlawful. Id. The lease contained an arbitration clause. DE 13. Consistent with that clause, the
Plaintiff previously demanded arbitration before the American Arbitration Association, or
“AAA.” Id. at 5. After the AAA failed to receive the necessary filing fees, however, the AAA
terminated the arbitration. Id. The parties characterize the AAA’s termination of arbitration very
differently, with the Plaintiff simply stating the fees were not timely paid by the Defendants, and
the Defendants attributing the failure to pay to a lack of notice from the AAA of the need to pay.
DE 10 at 6.
The dispute before the Court turns solely on whether the Defendants have waived the
right to arbitrate, with the Plaintiff arguing this waiver occurred when the Defendants failed to
pay the necessary fees to the AAA. It is true that a defendant’s failure to pay an arbitration fee
can result in a waiver of the right to arbitrate. E.g., Freeman v. SmartPay Leasing, LLC, 771 F.

App’x 926 (11th Cir. 2019). Whether a waiver occurs, however, depends on the facts of each
case. Burton-Dixie Corp. v. Timothy McCarthy Constr. Co., 436 F.2d 405, 408 (5th Cir. 1971).
However, “because federal law favors arbitration, any party arguing waiver of arbitration bears a
heavy burden of proof.” Stone v. E.F. Hutton & Co., 898 F.2d 1542, 1543 (11th Cir. 1990).
Here, the Plaintiff has not carried its “heavy burden of proof” to establish waiver. For
example, the Defendants have provided evidence that the AAA’s request for payment was sent to
Defendant Ford Motor Credit, not Defendant Al Packer, but that the letter demanded payment
from Al Packer, not Ford Motor Credit. DE 10-4. Al Packer’s address does not appear on the
letters demanding payment. Id. And far from exhibiting an intention to waive arbitration, the
Defendants have vehemently asserted their collective desire to arbitrate in their filings before this
Court.
Therefore, because the Plaintiff has not carried his heavy burden to establish waiver, it is
ORDERED AND ADJUDGED that the Defendants’ Motions to Compel Arbitration [DE 10,
11] are both granted. This matter is STAYED and the parties are ORDERED to proceed with
arbitration, consistent with their agreement to do so. The Clerk of the Court shall CLOSE THIS
CASE and all other pending motions are DENIED AS MOOT.
DONE and ORDERED in Chambers, West Palm Beach, Florida, this 7th day of
February, 2024.
_______________________________
ROBIN L. ROSENBERG
UNITED STATES DISTRICT JUDGE

Copies furnished to Counsel of Record

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