FIRST OPTIONS OF CHICAGO, INC., PETITIONER v. MANUEL KAPLAN, ET UX. AND MK INVESTMENTS, INC., 514 U.S. 938

Summary

The clearinghouse cleared stock trades for the investment company, which incurred substantial losses in its trading account. The clearinghouse and the investment company entered into an agreement for repayment of the debt. When the investment company lost additional money, the clearinghouse demanded immediate repayment and insisted that the stock trader and his wife personally pay any deficiency. The clearinghouse sought arbitration under the Arbitration Act, 9 U.S.C.S. § 1 et seq. Neither the stock trader nor his wife had personally signed the repayment agreement. They contested the arbitrability of the dispute with the clearinghouse. The Court held (1) the record did not show that the stock trader and his wife clearly agreed to have the arbitrators decide the question of arbitrability, (2) the court of appeals correctly held the arbitrability of the dispute between the clearinghouse and the stock trader and his wife was subject to independent review by the courts, and (3) the court ...