Fabian Financial Services v. Kurt H. Volk, Inc. Profit Sharing Plan

OPINION ON ORDER DENYING PRELIMINARY INJUNCTION AND GRANTING ATTORNEYS’ FEES

PROCEDURAL HISTORY

On April 5, 1991, plaintiff Fabian Financial Services (“Fabian”) filed its Application for Preliminary Injunction seeking to restrain the Kurt H. Volk, Inc. Profit Sharing Plan (the “Plan”) from proceeding with arbitration of a claim against Fabian before the American Arbitration Association (“AAA”). On April 29, 1991, the Plan filed its Motion to Stay in which the Plan sought a stay of plaintiff’s declaratory relief claim pending the outcome of arbitration. The Plan also sought an award of attorneys’ fees and costs.

The issue presented is whether the Plan’s claim arising under ERISA against its investment advisor for breach of fiduci ary duties may be submitted to arbitration over the objection of the advisor.

Oral argument was heard on May 6, 1991. The Court denied Fabian’s application for preliminary injunction and granted the Plan’s motion to stay. The Court also awarded attorneys’ fees to the Plan and requested that counsel for defendant prepare, serve and lodge proposed Findings of Fact and Conclusions of Law consistent with the Court’s ruling pursuant to Local Rule 14.3. The…