Jefferies International Ltd & Anor v Cantor Fitzgerald & Co & Ors

Jefferies International Ltd & Anor v Cantor Fitzgerald & Co & Ors

There was no bilateral arbitration agreement between Jefferies US and Cantor US; the regulatory obligation under FINRA rules does not constitute a contract between the parties for the purposes of Arbitration Act 1996 s.9. England is the only forum where all claims can be tried together, and no credible alternative...

Source-derived case information.

Parties
Claimant: Jefferies International Limited; Claimant: Jefferies Hong Kong Limited; Claimant: Jefferies LLC; Defendant: Cantor Fitzgerald & Co; Defendant: Cantor Fitzgerald Europe; Defendant: Cantor Fitzgerald (Hong Kong) Capital Markets Limited; Defendant: Carlos Gustavo Candil Garcia; Defendant: Afonso Salema; Defendant: Jorden Lacey
Jurisdiction
England and Wales
Judgment Date
02 June 2020
Procedural Posture
Civil / Interlocutory Application—jurisdictional Challenge and Application for Stay
Outcome
Defendants' applications dismissed; claims to proceed to trial in England.
Legal Topics
Jurisdictional Challenge, Stay of Proceedings, Arbitration Agreements, Team Move Litigation, Enforceability of Repayment Agreements, Case Management Stay, Exclusive Jurisdiction Clauses
Civil Procedure Conflict of Laws Employment Law Arbitration Jurisdictional Challenge Stay of Proceedings Arbitration Agreements Team Move Litigation +3 more

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Parties

Jefferies International Limited

Claimant

Jefferies Hong Kong Limited

Claimant

Jefferies LLC

Claimant

Cantor Fitzgerald & Co

Defendant

Cantor Fitzgerald Europe

Defendant

Cantor Fitzgerald (Hong Kong) Capital Markets Limited

Defendant

Carlos Gustavo Candil Garcia

Defendant

Afonso Salema

Defendant

Jorden Lacey

Defendant

Procedural Posture

Civil / Interlocutory Application—jurisdictional Challenge and Application for Stay

Legal Issues

  1. 1 Whether the claims between Jefferies US and Cantor US are subject to a binding arbitration agreement and should be stayed under the Arbitration Act 1996 s.9
  2. 2 Whether England is the proper forum for the claims against Cantor US and Cantor HK
  3. 3 Whether Jefferies breached its duty of fair presentation on the without notice application for permission to serve out

Ratio Decidendi

There was no bilateral arbitration agreement between Jefferies US and Cantor US; the regulatory obligation under FINRA rules does not constitute a contract between the parties for the purposes of Arbitration Act 1996 s.9. England is the only forum where all claims can be tried together, and no credible alternative forum was identified. There was no breach of the duty of fair presentation. The claims should not be stayed on case management grounds as the FINRA arbitration does not bind all parties or resolve all issues. Exclusive jurisdiction clauses in favour of New York courts are to be disregarded under current English law for these employment-related claims.

Court Disposition

Defendants' applications dismissed; claims to proceed to trial in England.

Orders

  • Applications to stay proceedings dismissed
  • Applications to set aside service out of jurisdiction dismissed