Kempner v. JPMorgan Chase Bank

Background

The plaintiff’s case concerns a certificate of deposit account at JPMorgan Chase Bank, N.A. The complaint alleges that the plaintiff and Chase entered into a Deposit Account Agreement and that Chase breached that agreement by failing to act in good faith when rolling over the certificate of deposit at a particular interest rate.

Chase’s request

Chase asked the court to stay, or pause, its November 20, 2025 deadline to answer or otherwise respond to the complaint. Chase said it planned to file a motion to compel individual arbitration—that is, a request requiring the plaintiff to pursue the dispute in arbitration rather than in court—and to stay the court case while arbitration proceeded.

Chase relied on an arbitration provision in the Deposit Account Agreement. The provision states that disputes concerning a deposit account, related transactions, and related agreements must be resolved through binding arbitration when either party requests it, unless an exception applies. It also waives participation in class, representative, or consolidated proceedings. Chase stated that the agreement allowed customers to opt out and that it would show through declarations that the plaintiff did not opt out. Chase argued that the plaintiff’s claims fell within the provision’s scope. The plaintiff consented to the stay request.

Ruling

Judge Gabriel W. Gorenstein granted the application to stay Chase’s time to respond to the complaint pending Judge Broderick’s decision on the planned motion to compel arbitration. The order did not decide whether arbitration must occur. If the motion to compel arbitration is denied, Chase must respond to the complaint within 21 days after the denial. If the motion is granted, proceedings in the case will be stayed pending completion of the arbitration.