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Nazar v. Wolpoff & Abramson, LLP

Citations: 530 F. Supp. 2d 1161; 2008 U.S. Dist. LEXIS 345; 2008 WL 43891Docket: 07-2025-JWL

Court: District Court, D. Kansas; January 2, 2008; Federal District Court

Narrative Opinion Summary

The case involves a legal dispute between several bankruptcy trustees, including Edward J. Nazar, against the law firm Wolpoff. Abramson, LLP, regarding debt collection practices linked to credit card accounts. The trustees, representing various debtors, contested Wolpoff's collection efforts, leading to an amended complaint. Wolpoff moved to strike and dismiss various claims, arguing that some should be stayed due to a prior arbitration order and that no suitable class representative existed for a proposed class action. The court granted Wolpoff's motion, striking claims related to plaintiffs Speth and Davis due to arbitration requirements and dismissing Nazar’s claims for lack of standing, labeling them as impermissible collateral attacks on arbitration awards under the Federal Arbitration Act (FAA). Additionally, the court converted Wolpoff's motion to dismiss into a motion for summary judgment, which it granted since Nazar failed to timely challenge the arbitration awards. The court dismissed Nazar's class action claim due to lack of standing, as his individual claims were resolved. The court emphasized the importance of adhering to FAA timelines and ruled against Nazar's request for injunctive relief due to the absence of a current controversy. The procedural history underscores the limitations on judicial review of arbitration outcomes and emphasizes the strict adherence required by the FAA. The case concludes with the court denying Nazar's motions for summary judgment as moot.

Legal Issues Addressed

Class Action Suit Standing

Application: The class action claim is dismissed as Nazar lacks standing after summary judgment on his individual claims, and other plaintiffs' claims are stayed pending arbitration.

Reasoning: To qualify as such, Nazar must share the same interests and injuries as the class, which he cannot do since he has lost standing after summary judgment on his individual claims.

Collateral Attack on Arbitration Awards

Application: Nazar's claims challenging the arbitration awards are considered impermissible collateral attacks, barred under the Federal Arbitration Act.

Reasoning: Nazar's claims are deemed a collateral attack on arbitration awards, seek an impermissible advisory ruling, and the class action claim is dismissed as derivative.

Motion to Strike and Dismiss

Application: The court grants Wolpoff's motion to strike and dismiss parts of the first amended complaint, including claims related to Speth and Davis due to a prior order compelling arbitration.

Reasoning: Wolpoff responded with a motion to partially strike and dismiss the amended complaint, arguing that claims related to plaintiffs Steven L. Speth and Carl B. Davis should be stricken due to a prior court order compelling arbitration, which stayed litigation on their claims.

Requirements for Injunctive Relief

Application: Nazar's request for injunctive relief against Wolpoff is denied as moot since no current case or controversy exists under Article III, § 2 of the U.S. Constitution.

Reasoning: Plaintiff Nazar admits he no longer needs an injunction against Wolpoff regarding a closed arbitration matter but seeks a court ruling on the unauthorized practice of law in Kansas to guide legal practitioners and consumers.

Summary Judgment Standards

Application: The court converts Wolpoff's motion to dismiss into a motion for summary judgment and grants it since there is no genuine issue of material fact.

Reasoning: Wolpoff's motion to dismiss plaintiff Nazar's claims, the court converts it to a motion for summary judgment due to the inclusion of external documents related to two arbitration proceedings.

Timeliness Under Federal Arbitration Act

Application: Nazar's failure to file a timely motion to vacate the arbitration awards within the three-month period prescribed by the FAA results in the forfeiture of his right to judicial review.

Reasoning: Nazar failed to file a motion to set aside the arbitration award within the three-month deadline mandated by the FAA.