Ajamie LLP is proud to share a significant development in the ongoing fight for fair compensation on behalf of former Morgan Stanley financial advisers.
In a win for our clients, the U.S. Court of Appeals for the Second Circuit dismissed Morgan Stanley’s appeal of an order compelling arbitration. That order contained a legal conclusion that Morgan Stanley’s deferred compensation plan for its financial advisors was subject to the protections of ERISA. But the appeals court refused to nullify that conclusion, and rejected Morgan Stanley’s argument that, even though the district court granted their motion to compel arbitration, the order amounted to an “effective denial” because the district court commented on the merits of the dispute. Thus, Morgan Stanley could not appeal that order under section 16 of the Federal Arbitration Act, which prohibits interlocutory appeals of orders compelling arbitration.
The appeals court also denied Morgan Stanley’s petition for a writ of mandamus, which similarly sought to nullify the ERISA conclusion. The appeals court stated that it was not “left with the firm conviction” that the decision of the district court to address the ERISA issue was based on an erroneous view of the law.
The unanimous ruling allows our clients’ claims to move forward in individual arbitrations, where others have already seen success.
This decision marks a key step forward in holding financial institutions accountable for compensation practices that affect hardworking advisers nationwide.
The case is Shafer et al. v. Morgan Stanley, Nos. 24-3141(L), 24-3271(XAP), in the U.S. Court of Appeals for the Second Circuit.
Congratulations to Ajamie LLP attorneys Jack Edwards and Courtney Scobie for their leadership on this matter.