Fed. Sec. L. Rep. P 96,863 A.G. Edwards & Sons, Inc., a Delaware Corporation v. William F. McCollough Jeanene McCollough Husband and Wife
Opinion
Opinion
A.G. Edwards & Sons appeals the district court’s order vacating an arbitration award against the McColloughs. 764 F.Supp. 1365 . We reverse and remand.
I
The McColloughs, investors, agreed to arbitration in lieu of a federal court suit to resolve a dispute with their brokers, Edwards & Sons, as to the cause of a considerable loss in their account. The McCol-loughs then filed with the New York Stock Exchange Director of Arbitration, their complaint alleging in conclusory fashion violation of federal and Arizona RICO, securities, and Consumer Protection statutes. Edwards & Sons answered, raising fourteen affirmative defenses, two of which the district court below found facially merit-less. The McColloughs responded by filing a brief which sought to rebut these defenses, and specifically argued that the two defenses in question were without merit. At the close of arbitration, the panel found in favor of Edwards & Sons and awarded the firm $310,850.12. The panel did not state the reasons for its award.
The brokers filed an Application to Confirm Arbitrator’s Award in federal court in Arizona. In response, the McColloughs moved to vacate the award or to remand for a statement of…