Jope

ORDER RE MOTIONS TO COMPEL ARBITRATION, SEVER ARBITRABLE CLAIM, AND STAY PROCEEDINGS

Plaintiff filed a First Amended Complaint in this action on August 22, 1985, seeking compensatory and punitive damages for violations of Rule 10b-5 of the Securities Exchange Act of 1934, breach of fiduciary duty, negligent securities account management, negligent employment and supervision, and negligence.

The matter is presently before the court on defendants PaineWebber Incorporated (“PaineWebber”) and Gilbert Johnson’s motion to compel arbitration of plaintiff’s Fifth Cause of Action, and on defendants Bear Stearns & Co. (“Bear Stearns”) and Gilbert Johnson’s motion to stay proceedings pending arbitration of various causes of action in this case.

In May, 1982, plaintiffs opened an investment account at PaineWebber. Defendant Johnson served as plaintiffs’ account executive at PaineWebber. In November, 1982, PaineWebber terminated Johnson’s employment, apparently for reasons unrelated to plaintiffs’ account. Bear Stearns then hired Johnson as an account executive “sometime around the end of 1982.” Plaintiffs’ Memorandum of Points and Authorities in Opposition to Bear Stearns’ Motion to Stay,…