Cook v. American Express
- Andrew Carter
- 1:21-cv-08935
- U.S. District Court · Southern District of New York
- 5
In Cook v. American Express, Judge Carter compelled individual arbitration and stayed the remaining claims, while denying a motion to strike with leave to renew.
Jessica Cook’s individual FCRA claims were sent to arbitration, and her proposed class claims could not proceed in class-wide arbitration under the Cardmember Agreement. American Express obtained a stay of the remaining claims while arbitration proceeds.
What happened
In Cook v. American Express, Jessica Cook alleged that American Express violated the federal Fair Credit Reporting Act by obtaining credit reports for an improper purpose and trying to collect debts discharged in bankruptcy. She brought the claims for herself and a proposed nationwide class.
American Express asked the court to require arbitration under the agreement governing Cook’s credit-card account. The court found that the agreement covered Cook’s claims because they related to her account, the agreement, and her relationship with American Express. The agreement also barred class-wide arbitration.
Judge Carter granted American Express’s motion to compel arbitration on an individual basis and stayed Cook’s remaining claims while arbitration proceeds. The court denied Cook’s motion to strike, but allowed her to renew that motion if the case returns after arbitration. The parties must provide status updates every 90 days.
The detailed version
- Cook v. American Express · No. 1:21-cv-08935
- Andrew Carter
- Mar. 31, 2023
Background
Jessica Cook sued American Express under the federal Fair Credit Reporting Act (FCRA). She alleged that American Express obtained her credit reports for an impermissible purpose after debts on her American Express account had been discharged in bankruptcy. She asserted negligent and willful FCRA violations on behalf of herself and a proposed nationwide class.
Cook had requested, and American Express had opened, an American Express Gold Delta SkyMiles credit-card account in her name. The account was governed by a Cardmember Agreement containing an arbitration agreement. The parties did not dispute that the arbitration agreement existed, and Cook did not deny receiving it or having an opportunity to review it.
Arbitration Agreement
The arbitration agreement broadly covered current or future claims relating to Cook’s accounts, the Cardmember Agreement, or any agreement or relationship with American Express. It expressly included claims based on statutes. The court concluded that Cook’s FCRA claims fell within that language because they related to debts incurred on her American Express card and later discharged in bankruptcy.
The agreement also barred Cook from arbitrating claims on a class-wide basis. The court therefore required arbitration only on an individual basis.
Rulings
The court granted American Express’s motion to compel arbitration on an individual basis and stayed Cook’s remaining claims in favor of arbitration. The parties were directed to file rolling status updates about the arbitration every 90 days.
The court did not reach Cook’s motion to strike because the matter was being sent to arbitration. It denied that motion with leave to renew if the case returns after arbitration. The Clerk of Court was directed to terminate the open motions at ECF Nos. 11 and 19.
Read the full 5-page opinion on CourtListener, the free public archive maintained by the Free Law Project.