Kennedy, Cabot & Co. v. National Ass'n of Securities Dealers, Inc.

Introduction

Real party in interest and appellant Donald J. Wascher (Wascher) appeals from the order granting Kennedy, Cabot & Co., Inc. (KCC) a preliminary injunction restraining defendant National Association of Securities Dealers, Inc. (NASD) and Wascher from pursuing the arbitration Wascher initiated against KCC on a claim of breach of contract and related claims.

In granting the injunction, the trial court held that the statute of limitations issue was a matter for the courts, not arbitration, and that the statute of limitations barred Wascher’s complaint.

Wascher contends the statute of limitations issue should be decided in the arbitration to which the parties had agreed by contract and by written submissions.

We find Wascher filed his claim within the time requirements of the arbitration agreement and that any statute of limitations issues relating to his claim are within the scope of the pending arbitration. The trial court abused its discretion in granting the injunction. Judgment reversed.

Factual and Procedural Background

KCC is a California corporation engaged in the business of securities trading. Wascher is a stockbroker. KCC and Wascher are members…