Clark v. First Union Securities, Inc.

INTRODUCTION

Defendant and appellant Wachovia obtained a trial court ruling that the putative class and class action causes of action brought by plaintiffs and respondents Jason Clark and Robert A. Pool were to be resolved in arbitration. Then, Wachovia obtained a ruling from the arbitrators that these causes of action were not eligible for arbitration. Thereafter, the trial court, on its own motion, reconsidered its first ruling. The trial court issued an order holding that the putative class and class causes of action were to be heard in the trial court. We affirm the trial court’s order.

FACTUAL AND PROCEDURAL BACKGROUND

1. The employment.

a. Clark’s contract and the U-4.

Plaintiff and respondent Jason Clark was hired by defendant and appellant First Union Securities, Inc. (First Union), as an investment consultant candidate.

Clark’s position required him to hold a license from the National Association of Securities Dealers, Inc. (NASD). Thus, Clark was required to execute a Securities and Exchange Commission (SEC) approved Uniform Application for Securities Industry Registration or Transfer Form U-4 (Form U-4). Clark executed a Form U-4 on October 28, 1998, and…