Hutson v. USAA Savings Bank

Filing 12

ORDER Denying as moot 6 Motion to Compel Arbitration and Granting 7 Motion to Dismiss this action Pending Arbitration. Plaintiff's 1 complaint is Dismissed without prejudice. Signed by Judge Gloria M. Navarro on 2/18/2021. (Copies have been distributed pursuant to the NEF - DRS)

Case 2:19-cv-01969-GMN-EJY Document 12 Filed 02/18/21 Page 1 of 3

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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WENDY SUE HUTSON,
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Plaintiff,

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vs.
USAA SAVINGS BANK,

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Defendant.

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Case No.: 2:19-cv-01969-GMN-EJY
ORDER

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Pending before the Court is the Motion to Compel Arbitration and Dismiss the Action

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Pending Arbitration, (ECF Nos. 6–7), filed by Defendant USAA Savings Bank (“Defendant”).

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Plaintiff Wendy Hutson (“Plaintiff”) filed a Response, (ECF No. 9), to which Defendant filed a

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Reply, (ECF Nos. 10–11).
For the reasons discussed below, the Court GRANTS Defendant’s Motion to Compel

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Arbitration and Dismiss the Action Pending Arbitration.

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I.

BACKGROUND
This case arises from Plaintiff Wendy Hutson’s (“Plaintiff’s”) allegation that she was a

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victim to Defendant’s unlawful, automated collection calls in violation of the Telephone

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Consumer Protection Act, 47 U.S.C. § 227, et seq. (See Compl. ¶¶ 1–2, ECF No. 1). Defendant

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moves to dismiss the Complaint and submit the matter to arbitration, alleging that Plaintiff’s

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Complaint falls within the scope of the parties’ arbitration agreement. (See Mot. Compel

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Arbitration and Mot. Dismiss 1:16–20, ECF Nos. 6–7).

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II.

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LEGAL STANDARD
Section 2 of the Federal Arbitration Act (“FAA”) provides that:

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A written provision in . . . a contract evidencing a transaction involving commerce
to settle by arbitration a controversy thereafter arising out of such contract or
transaction . . . shall be valid, irrevocable, and enforceable, save upon such grounds
as exist at law or in equity for the revocation of any contract.

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9 U.S.C. § 2. “In enacting § 2 of the federal Act, Congress declared a national policy favoring

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arbitration and withdrew the power of the states to require a judicial forum for the resolution of

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claims which the contracting parties agreed to resolve by arbitration.” Southland Corp. v.

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Keating, 465 U.S. 1, 10 (1984).

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Under the FAA, parties to an arbitration agreement may seek an order from the Court to

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compel arbitration. 9 U.S.C. § 4. The FAA “leaves no place for the exercise of discretion by a

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district court, but instead mandates that district courts shall direct the parties to proceed to

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arbitration on issues as to which an arbitration agreement has been signed.” Dean Witter

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Reynolds Inc. v. Byrd, 470 U.S. 213, 218 (1985) (emphasis original). Thus, the Court’s role is

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limited to, “determining (1) whether a valid agreement to arbitrate exists and, if it does, (2)

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whether the agreement encompasses the dispute at issue.” Lee v. Intelius, Inc., 737 F.3d 1254,

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1261 (9th Cir. 2013) (quoting Chiron Corp. v. Ortho Diagnostic Sys., Inc., 207 F.3d 1126, 1130

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(9th Cir. 2000) (internal quotations omitted)). The moving party must establish the existence of

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the arbitration agreement by a preponderance of evidence. See Norcia v. Samsung Telcoms.

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Am., LLC, 845 F.3d 1270, 1283 (9th Cir. 2017).

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III.

DISCUSSION

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Defendant argues that the dispute should be submitted to arbitration because the dispute

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is within the Arbitration Clause in their Credit Card Agreement. (See Mot. Compel 5:25–6:27);

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(see also Arbitration Addendum ¶ A.2, Ex. B to Mot. Compel and Mot Dismiss, ECF No. 6-2).

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Plaintiff, in her Response, states that she “has submitted her claim to the American Arbitration

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Association pursuant to the terms of the Arbitration Addendum.” (Pl.’s Resp. 2:1–2, ECF No.

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Case 2:19-cv-01969-GMN-EJY Document 12 Filed 02/18/21 Page 3 of 3

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9). Because Defendant received the relief it originally sought in its Complaint, the Court denies

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as moot Defendant’s Motion to Compel Arbitration.
The Court must now decide whether to dismiss this action pending arbitration. Plaintiff

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requests that the Court stay this matter so that the Court can enforce the arbitration award,

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while Defendant seeks dismissal. (See Pl.’s Resp. 2:5–6); (see also Mot. Compel and Mot.

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Dismiss 7:1–13). Whether to dismiss or stay an action because of a valid arbitration agreement

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is within the discretion of the Court. See 2151 Michelson, L.P. v. Corp. of the Presiding Bishop

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of the Church of Jesus Christ of Latter-Day Saints, 754 F. App’x 596, 597 (9th Cir. 2019)

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(citing Sparling v. Hoffman Constr. Co., 864 F.2d 635, 638 (9th Cir. 1988)). Dismissal is

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appropriate when all claims in the action are subject to arbitration. Id. Here, because all of

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Plaintiff’s claims are subject to the arbitration agreement and the claims have already been

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submitted to arbitration, the Court finds that dismissal without prejudice is appropriate.1

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IV.

IT IS HEREBY ORDERED that Defendant’s Motion to Compel Arbitration, (ECF No.

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CONCLUSION

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IT IS FURTHER ORDERED that Defendant’s Motion to Dismiss the Action Pending

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Arbitration, (ECF No. 7), is GRANTED. Plaintiff’s Complaint, (ECF No. 1), is DISMISSED

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without prejudice.

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The Clerk of Court shall close the case.

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DATED this _____ day of February, 2021.

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__________________________________
Gloria M. Navarro, District Judge
UNITED STATES DISTRICT COURT

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Should Plaintiff receive relief, she may initiate an action by filing a motion to confirm the arbitration award in a
court of competent jurisdiction under 9 U.S.C. § 9.

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