C.D. Anderson & Co., Inc. v. Michael A. Lemos, and John Lemos

Appellant C.D. Anderson & Co., Inc. appeals from the district court’s grant of summary judgment in favor of Appellee Michael A. Lemos. The district court found that C.D. Anderson’s claims under § 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), and the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1962 , were barred by an award rendered in an arbitration between C.D. Anderson and Lemos. We affirm the district court’s ruling.

I.

BACKGROUND

C.D. Anderson & Co., Inc. is a stock brokerage company. On December 15, 1983, Michael A. Lemos entered into a written contract with C.D. Anderson by which C.D. Anderson agreed to open an account for Lemos and to act as Lemos’ stockbroker. Michael’s brother, John, was authorized to act as Michael’s agent.

By April of 1984, Michael Lemos had deposited about $19,800 into the account. However, trading on behalf of the account generated a deficit of about $22,700. Michael Lemos and C.D. Anderson disagreed over how to settle the deficit.

In their written contract, C.D. Anderson and Michael Lemos had agreed “that any controversy between us arising out of or related to this agreement, the interpretation or…