Arbitration Clause In Form U-4 Is Generally Enforceable
Numerous decisions have held that the arbitration clause of U-4 (Uniform Application for Securities Industry Registration or Transfer) is generally enforceable between National Association of Securities Dealer (NASD) or other exchange member and its registered employees in employment disputes of all kinds, including compensation disputes, age and sex discrimination suits, and claims of wrongful discharge.
See, e.g., Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 111 S. Ct. 1647, 114 L. Ed. 2d 26 (1991) (age discrimination claim brought by terminated broker); McGinnis v. E.F. Hutton & Co., 812 F.2d 1011 (6th Cir. 1987) (wrongful discharge claim brought by registered non-broker employee);
Henderson v. Tucker, Anthony & RL Day, 721 F. Supp. 24 (D.R.I. 1989) (compensation, wrongful discharge and bad faith claims brought by terminated broker);
Grote v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 682 So. 2d 926 (La. App. 1996) (wage claims brought by terminated broker employees);
see also Young v. Prudential Insurance Co., 688 A.2d 1069, 297 N.J. Super. 605 (1997) (registered employee required to arbitrate all claims against employer except those relating to its insurance business, which is expressly excluded from arbitration under NASD rules).
Colorado public policy strongly favors the resolution of disputes through arbitration. Colo. Const. art. XVIII, 3; Camelot Investments, LLC v. LANDesign, LLC, 973 P.2d 1279 (Colo. App. 1999).
Although no Colorado appellate decision has addressed this issue, in light of the strong public policy favoring arbitration, we are persuaded that the authorities cited above, and others reaching the same conclusion, are correct.
We therefore conclude that the agreement to arbitrate found in plaintiff's Form U-4 is binding on him and may be enforced by defendant unless, as plaintiff argues, that agreement was superseded by the purported employment contract.