Move, Inc. v. Citigroup Global Markets, Inc.

Move, Inc. (Move) appeals the district court’s order dismissing its action and denying its motion to vacate an arbitration award pursuant to the Federal Arbitration Act (FAA), 9 U.S.C. § 1 et seq. We have jurisdiction pursuant to 9 U.S.C. § 16 (a)(3) and 28 U.S.C. § 1291 . We hold that Move’s motion was not untimely because the FAA is subject to equitable tolling. We also hold that Move’s right to a fundamentally fair hearing was prejudiced by the fraudulent misrepresentations of the arbitration panel’s chairperson, resulting in proceedings led by an arbitrator who should have been disqualified from the dispute under the rules and regulations of the Financial Industry Regulatory Authority (FINRA). Accordingly, we REVERSE the district court’s judgment in part and REMAND the case for entry of judgment in favor of Move.

BACKGROUND

Move maintained an investment account with Citigroup Global Markets, Inc. (Citigroup). In connection with its investments, Move entered into a “Client Agreement” with Citigroup stating, in relevant part, that “all claims or controversies ... shall be determined by arbitration before, and only before, any self-regulatory organization or exchange…