STANDER v. FINANCIAL CLEARING & SERVICES CORP.

No. 88 Civ. 1350 (PKL).

718 F.Supp. 1204 (1989)

Gertrude STANDER, Plaintiff, v. FINANCIAL CLEARING & SERVICES CORPORATION, Domestic Arbitrage Group, Inc., Rushmore Securities, Jerry W. Czin and John Does Nos. 1-10, Defendants.

United States District Court, S.D. New York.

August 10, 1989.


Attorney(s) appearing for the Case

Curtis, Mallet-Prevost, Colt & Mosle, New York City (Eliot Lauer, Donald L. Shuck, Jr., David R. Fredrickson, of counsel), for plaintiff.

Bressler, Amery & Rothenberg, New York City (Brian F. Amery, of counsel), for defendants Domestic Arbitrage Group, Inc., Rushmore Securities and Jerry W. Czin.

Gaston & Snow, New York City (Eva H. Posman, of counsel), for defendant Financial Clearing & Services Corp.


LEISURE, District Judge.

The claims in this action arise from defendants' allegedly fraudulent and improper trading in securities. Plaintiff alleges that her entire investment in an account operated by defendants was eliminated, and substantial deficits generated, during the precipitous decline of the stock market in the fall of 1987.

The first issue before the Court is the threshold consideration of whether the claims must be arbitrated, pursuant to contracts...

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