Linsco/Private Ledger, Inc. v. Investors Arbitration Services, Inc.

We have consolidated for purposes of argument and decision two identical appeals arising from separate but virtually identical lawsuits seeking to enjoin defendant from the unauthorized practice of law. The trial court dismissed both lawsuits after granting defendant’s motions to strike the complaints under the anti-SLAPP statute (Code Civ. Proc., § 425.16). We conclude plaintiffs’ lawsuits do not qualify as SLAPP suits, and we reverse the judgments.

Background

Within the securities industry, disputes between customers and securities broker-dealers are invariably resolved by arbitration pursuant to an arbitration clause in the customer-broker agreements. (See generally, Shearson/American Express Inc. v. McMahon (1987) 482 U.S. 220 [ 96 L.Ed.2d 185 , 107 S.Ct. 2332 ].) Defendant, Investors Arbitration Services, Inc. (IAS), provides assistance and representation for a fee to individual investors who seek to pursue a claim in arbitration against a securities broker. IAS is not a law firm, although it does have some attorneys on its staff. Its services are confined to securities arbitration matters. Plaintiffs are securities broker-dealers who have been faced with a…