Karolyn Shepherd, Individually and as Co-Successor Trustee of the Burge Family Revocable Trust, Judy Kay Stevenson, Individually and as Beneficiary of the Burge Family Revocable Trust, Jon Mark Shepherd, Individually, and Girard Securities, Inc. v. Bobby Burge, Individually and as Beneficiary of the Burge Family Revocable Trust

Karolyn Shepherd, Individually and as Co-Successor Trustee of the Burge Family Revocable Trust, Judy Kay Stevenson, Individually and as Beneficiary of the Burge Family Revocable Trust, Jon Mark Shepherd, Individually, and Girard Securities, Inc. v. Bobby Burge, Individually and as Beneficiary of the Burge Family Revocable Trust

Because the account opening documents contained an uncontrabverted arbitration clause acknowledged by the plaintiff and co-signed by the registered representative, and because the plaintiff's factual allegations concern transactions and controversies arising from the IRA and joint accounts expressly covered by the clause, the trial court erred in denying the motions to compel arbitration; the claims must be submitted to arbitration and the trial court proceedings stayed.

Citation
Karolyn Shepherd, Individually and as Co-Successor Trustee of the Burge Family Revocable Trust, Judy Kay Stevenson, Individually and as Beneficiary of the Burge Family Revocable Trust, Jon Mark Shepherd, Individually, and Girard Securities, Inc. v. Bobby Burge, Individually and as Beneficiary of the Burge Family Revocable Trust
Parties
Appellant: Girard Securities, Inc.; Appellant: Jon Mark Shepherd; Appellee: Bobby Burge
Court
Texas Supreme Court
Jurisdiction
United States
Judgment Date
5 September 2017
Case Number
07-17-00295-CV
Procedural Posture
Interlocutory Appeal From Denial of Motion to Compel Arbitration / Appeal From Denial of Motions to Compel Arbitration and Request to Stay Trial Court Proceedings Pending Arbitration
Outcome
Appellants request reversal of the trial court order denying motions to compel arbitration, an order compelling arbitration of plaintiff's claims against Girard and Shepherd, and a stay of the trial court proceedings pending arbitration.
Legal Topics
Motion to Compel Arbitration, Scope of Arbitration Clause, Enforceability of Arbitration Agreements, Interlocutory Appeal, Stay Pending Arbitration
Source Language
English
Arbitration Contract Law Securities Law Civil Procedure Motion to Compel Arbitration Scope of Arbitration Clause Enforceability of Arbitration Agreements Interlocutory Appeal +1 more

Case Brief

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Parties

Girard Securities, Inc.

Appellant

Jon Mark Shepherd

Appellant

Bobby Burge

Appellee

Procedural Posture

Interlocutory Appeal From Denial of Motion to Compel Arbitration / Appeal From Denial of Motions to Compel Arbitration and Request to Stay Trial Court Proceedings Pending Arbitration

Legal Issues

  1. 1 Whether a valid, enforceable arbitration agreement existed between the parties
  2. 2 Whether the plaintiff's claims fall within the broad scope of the arbitration agreement
  3. 3 Whether individual registered representative (Shepherd) and broker-dealer (Girard) are bound to arbitrate disputes arising from the accounts

Ratio Decidendi

Because the account opening documents contained an uncontrabverted arbitration clause acknowledged by the plaintiff and co-signed by the registered representative, and because the plaintiff's factual allegations concern transactions and controversies arising from the IRA and joint accounts expressly covered by the clause, the trial court erred in denying the motions to compel arbitration; the claims must be submitted to arbitration and the trial court proceedings stayed.

Court Disposition

Appellants request reversal of the trial court order denying motions to compel arbitration, an order compelling arbitration of plaintiff's claims against Girard and Shepherd, and a stay of the trial court proceedings pending arbitration.

Orders

  • Reverse the trial court's denial of the motions to compel arbitration
  • Order Bobby Burge to arbitrate his claims against Girard Securities, Inc. and Jon Mark Shepherd pursuant to the account agreements' arbitration clause