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- Title
SECURITIES--SIMULTANEOUS PROCEEDINGS- MOTION TO COMPEL--MOTION TO STAY- ARBITRATION ACREEMENT--DISCLAIMER.
- Abstract
This article reports on a court ruling given in the case "Gotshall versus A.G. Edwards & Sons Inc., 701 F. Supp. 675, Illinois, 1988." Raymond E. Gotshall entered into two brokerage contracts with A.G. Edwards & Sons for the management of his investments. Both contracts contained arbitration clauses and disclaimers to the effect that arbitration could not be compelled with respect to disputes arising under federal securities laws. A dispute arose in connection with the investment program, under which Gotshall lost approximately $2 million. Edwards filed for arbitration, and, without waiting for arbitration to proceed, Gotshall filed an action in federal court. In deciding whether to compel arbitration and stay the court proceedings, the court stated that the issue was whether a special disclaimer of an arbitration agreement in the brokerage contract as it relates to federal securities claims is binding on the parties. Finding that the disclaimer was expressed in plain and clear language, the court ruled that the disclaimer would be upheld and that it could not compel arbitration.
- Subjects
ILLINOIS; UNITED States; LEGAL judgments; ARBITRATION &; award; ACTIONS &; defenses (Law); SECURITIES trading; INVESTMENTS; CONTRACTS; A.G. Edwards Inc.; GOTSHALL, Raymond E.
- Publication
Arbitration Journal, 1989, Vol 44, Issue 2, p63
- ISSN
0003-7893
- Publication type
Article