United States Fifth Circuit

In an action alleging negligence and breach of fiduciary duty, claiming that defendants caused plaintiffs to suffer losses in allegedly unsuitable investments, denial of defendants' motion to compel arbitration and to stay judicial proceedings pursuant to the Federal Arbitration Act is affirmed and the appeal dismissed where: 1) the arbitration agreement at issue indicated the NASD was the only appropriate arbitration forum for the dispute and that the parties were bound to arbitrate under the NASD rules; 2) the parol evidence rule does not preclude consideration of defendants' NASD membership status; 3) an NASD rule was not severable from the remainder of the agreement; and 4) consequently, the forum selection provision was enforceable, and the chosen forum was no longer available because defendants allowed their NASD membership to lapse.

Appellate Information

• Decided 12/12/2007
• Published 12/13/2007

Judges

• E. GRADY JOLLY, Circuit Judge:, Before JOLLY, DAVIS, and WIENER, Circuit Judges.

Court

• United States Fifth Circuit

Counsel

• For Appellant:
  
• Preston Davis Rideout, Jr. (argued), Albert Lee Abraham, Jr., Abraham & Rideout, Greenwood, MS, for Harold and Margaret Galey.


• For Appellees:
  
• Robert Engelbrecht Haubereg, Jr., Clarence Lee Lott, III (argued), Bradley S. Clanton, Baker, Donelson, Bearman, Caldwell & Berkowitz, Jackson, MS, for Defendants-Appellants.