Two Arbitration Agreements Signed…Which Will Be Upheld?

Woman and her accountant/Oakwood Capital Management agreed any dispute between them would be decided under California law through arbitration in accordance with American Arbitration Association [AAA] rules. The agreement between the woman and Ameritrade provides for arbitration governed by Nebraska law in accordance with Financial Industry Regulatory Authority [FINRA] rules. The trial court denied the petitions for arbitration because of the risk of inconsistent rulings. Regarding Oakwood, the appellate court affirmed, finding there was a risk of duplicative or conflicting rulings. As to Ameritrade, the appellate court reversed, noting that unlike California’s Arbitration Act, Nebraska law does not authorize a court to stay arbitration or refuse to enforce an arbitration provision to avoid duplicative or conflicting rulings. Mastick v. TD Ameritrade (Cal. App. Second Dist., Div. 6; October 9, 2012) 209 Cal.App.4th 1258.