Lapkass

BACKGROUND

Paul worked as a financial advisor for Wells Fargo until his death in 2021. In that role he serviced accounts under a Wells Fargo advisors team agreement made between Paul, Schoenike, and Wells Fargo. Paul designated his wife Ulrike as his beneficiary under a team member protection provision of the agreement, which provided that in the event of Paul’s death, Ulrike would receive a lump sum payment based on a valuation of Paul’s revenue. The team agreement addressed dispute resolution but did not require arbitration. Ulrike, individually and as trustee of the Lapkass Family Trust, subsequently sued Wells Fargo and Schoenike for breach of contract, breach of the implied covenant of good faith and fair dealing, conversion, and restitution based on unjust enrichment in relation to the accounts serviced under the team agreement. Among other things, the complaint alleged Wells Fargo and Schoenike failed to pay Ulrike money owed under the agreement, and converted Paul’s book of business to their own use without compensating Ulrike. Wells Fargo and Schoenike moved to compel arbitration, arguing Ulrike is a third- party beneficiary of the team agreement and Paul also signed…