]]> Home | Message Board Home Search Arbitration Investors Brokers Finance Law Compliance Archives Futures Account Agreement Does Not Encompass Claims Relating to Separate Agreement
Crotser vs. Smith Barney & Co., Inc., NO 228226 (Mich. App., 4/30/02)
Appealability * Scope of Agreement * Arbitration Agreement * Competing Agreements.
A futures account agreement does not encompass claims relating to separate consulting services provided by the FCM.
Plaintiff entered into an agreement with a predecessor firm (Hutton) of Smith Barney, under which he was provided with advice concerning the sale of his corn crop. There was no arbitration clause in that agreement. When he sued Smith Barney, based upon the consultation advice and some futures losses, Smith Barney asserted plaintiffs futures account agreement and sought arbitration. This agreement was signed by Plaintiff when he opened a commodities futures trading account with Smith Barney and called for arbitration of any controversy that might arise between the parties. Specifically mentioned were transactions or accounts maintained with predecessor firms. The trial court granted arbitration of all claims, but this Court reverses. [T]here is strong evidence indicating that the arbitration agreement referred solely to exchange-related disputes, and the terms transactions and accounts clearly referenced plaintiffs commodities trading account or any other trading accounts . Plaintiffs claims relating to [his corn crop] were not associated with any exchange-related trading accounts. (SLC Ref. No. 02-18-03)
Copyright 2000-2002 Securities Arbitration Commentator, Inc. P.O. Box 112, Maplewood, NJ 07040; t: 973-761-5880 f: 973-761-1504. Materials denoted with a SAC Reference No. (e.g. SAC Ref. No. 99-01-001) are on hand at SAC and may be obtained by calling the Securities Arbitration Commentator, or by email to firstname.lastname@example.org. The Securities Arbitration Commentator is the leading publication for securities arbitration news and information, and maintains the most complete database of arbitration awards availalble anywhere. For more information regarding their services, visit their website at www.sacarbitration.com
Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial advisor before acting upon the information contained in this article.
Return to The Securities Law Home Page
Visit Beam & Astarita, LLC, securities arbitration, regulation and litigation attorneys