Shaffer

Shaffer v. MERRILL LYNCH, PIERCE, FENNER & SMITH

Good Law

779 F. Supp. 2d 1085·2011 WL 1225888·2011 U.S. Dist. LEXIS 38659

United States District Court, Northern District of CaliforniaApril 1, 2011C 11-0303 CRBCalifornia5,235 words

Opinion

Breyer, J.

ORDER GRANTING MOTION TO CONFIRM AND CORRECT ARBITRATION AWARD AND DENYING MOTION TO VACATE ARBITRATION AWARD

This case presents the issue of whether a neutral arbitrator is required to disclose his use of two private research attorneys. The Court concludes that the best practice is to disclose the arbitrator’s plan to use research attorneys and give the parties an opportunity to object in advance. That is not what happened here. However, Defendant has not made a showing that the arbitrator’s failure to follow this best practice was either misconduct or a breach of contract. Even if it was misconduct or a breach of contract, Defendant waived its right to object by failing to question the use of the research attorneys during the arbitration proceeding.

Therefore, Defendant’s Motion to Vacate the arbitration award is DENIED and Plaintiffs Motion to Confirm and Correct the award is GRANTED.

I. BACKGROUND

Plaintiff worked for Defendant for more than 20 years as a financial advisor. Choi Decl. ¶ 2. During his time at Merrill Lynch, Plaintiff received long-term incentive compensation under three separate plans. Id. ¶ 3. In 2008, he left Merrill Lynch to work for a competitor. Id. ¶¶…

Sign in to read the full opinion

Create a free account to read the complete opinion text, citation history, and good-law status for this case.