Hayes et al v. Delbert Services Corporation

Filing 38

OPINION. Signed by District Judge John A. Gibney, Jr on 01/21/2015. (jsmi, )

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division

JAMES HAYES, et al.
Plaintiffs,
V.

Civil Action No. 3:14-cv-258

DELBERT SERVICES CORPORATION,
Defendant.
OPINION

This matter comes before the Court on the defendant's motion to dismiss the amended

complaint or, alternatively, to compel arbitration. (Dk. No. 30.) The plaintiffs, borrowers from

internet payday lender Western Sky Financial, LLC, brought this action on behalf of themselves
and others similarly situated against Delbert Services Corporation, a third-party debt collector.
The plaintiffs allege Delbert violated the Fair Debt Collection Practices Act ("FDCPA") and the
Telephone Consumer Protection Act ("TCPA") in the course of its collection efforts. Delbert
moves to dismiss based on the Loan Agreements' forum-selection clause or on the basis of the

tribal exhaustion doctrine. Alternatively, Delbert moves to compel arbitration.
The forum-selection clause does not reach third-party debt collectors such as Delbert, and
the doctrine of tribal exhaustion does not apply under the facts of this case. The language of the
arbitration agreement, however, covers disputes with third-party debt collectors.

Accordingly, the Court GRANTS the motion to compel arbitration under the terms of the
Loan Agreement and DISMISSES the claim without prejudice.