Cione v. Foresters Equity Services, Inc

In Cione v. Foresters Equity Services, Inc. (1997) 58 Cal.App.4th 625, the appellate court reversed the trial court's order denying the motion to compel arbitration of an employment dispute with a member of the National Association of Securities Dealers, Inc. (NASD). As part of his employment, the plaintiff signed a Uniform Application for Securities Industry Registration (Form U-4) and identified Foresters Equity Services (FESCO) as his employer. The Form U-4 contained an arbitration clause providing: " 'I agree to arbitrate any dispute, claim or controversy that may arise between me and my firm, or a customer, or any other person, that is required to be arbitrated under the rules, constitutions, or by-laws of the organizations with which I register, as indicated in item 10 as may be amended from time to time.' " In item 10 of the Form U-4, the plaintiff had registered with NASD. ( Id. at pp. 630-631.) The plaintiff also had a written employment contract with FESCO, which was signed three years after the Form U-4 and did not have an arbitration provision. ( Id. at p. 631.) The Court of Appeal held that in light of the strong public policies favoring arbitration, the trial court had erred in ruling that the employment contract negated the arbitration provision in the Form U-4. ( Id. at p. 633.)