Hurst v. 1st Discount Brokerage, Inc. et al
ORDER denying 75 Motion to Dismiss; granting 77 Motion to Dismiss; ORDER ADOPTING 95 REPORT AND RECOMMENDATIONS and administratively terminating case subject to being reopened for good cause shown upon the conclusion of arbitration. Signed by Honorable Jimm Larry Hendren on November 15, 2011. (tg)
IN THE UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF ARKANSAS
COBY TOWNSEND HURST
Civil No. 10-5127
1ST DISCOUNT BROKERAGE, INC.;
RIDGE CLEARING & OUTSOURCING
SOLUTIONS, INC.; BILL CRAFT;
and RAY ROGERS
O R D E R
consideration the following:
Defendant's Request For Dismissal Of All Allegations
(document #75) filed by defendant Bill Craft;
Alternatively, Motion To Compel Arbitration Of Issues Presented In
Plaintiff's Second Amended Complaint (document #77) filed by
Outsourcing Solutions, Inc.; and Ray Rogers;
(document #95); and
(document #96) filed by Bill Craft,
and the Court, having carefully reviewed the foregoing, finds and
orders as follows:
In his Second Amended Complaint, plaintiff Coby Townsend
Hurst ("Hurst") alleges that defendants Ray Rogers ("Rogers") and
Bill Craft ("Craft") were, during the relevant time period, agents
Discount"), a securities brokerage doing business in Washington
Hurst further alleges that defendant Ridge
Exchange doing business in Washington County, Arkansas, with which
Craft and Ray were associated.
The gravamen of the Second Amended Complaint is Hurst's
contention that Ray and Craft failed to timely transfer certain
securities payable to him on the death of his father, and that
during the delay the securities lost value.
1st Discount, Ridge, and Ray moved to dismiss or stay,
contending that Hurst's claim is subject to arbitration pursuant
to contracts signed by both Hurst and his father.
Craft moved to
dismiss, contending that the facts are in his favor.
The Magistrate Judge did a careful analysis of the
brokerage agreements signed by Hurst and his father, and concluded
that the dispute here asserted is subject to arbitration.
decision included the dispute as it relates to Craft, "since it is
not disputed that he is an agent of 1st Discount, and as such, is
subject to the same contractual provisions, including arbitration
contracts, to which the principal is bound."
Craft filed a document entitled "Defendant's Request For
Report And Recommendations," which has been treated as Objections
to the Report And Recommendation.
In it, Craft again presents
factual arguments which he believes favor dismissal of the claims
against him, and asks the Court to direct the other parties to
provide him with discovery.
The Court will deny the relief sought by Craft.
of a motion to dismiss is not to obtain a decision on the merits,
but to determine whether the plaintiff has asserted facts that
affirmatively and plausibly suggest that he has the right he
Gregory v. Dillard's, Inc., 565 F.3d 464, 473 (8th Cir.
2009). Thus, to the extent Craft asserts his lack of culpability,
the Court simply cannot consider contentions.
Nor can the Court grant Craft's plea for discovery.
appropriate action is administrative termination of the judicial
proceedings, relegating the parties to the procedures available in
the arbitration forum they have agreed upon.
Request For Report And Recommendations (document #96) are denied.
IT IS FURTHER ORDERED that the Motion To Dismiss Second
Amended Complaint Or, Alternatively, Motion To Compel Arbitration
(document #77) is granted.
IT IS FURTHER ORDERED that the Magistrate Judge's Report And
Recommendation (document #95) is adopted in toto, and this matter
is hereby administratively terminated, subject to being reopened
for good cause shown upon the conclusion of arbitration.
IT IS SO ORDERED.
/s/ Jimm Larry Hendren
JIMM LARRY HENDREN
UNITED STATES DISTRICT JUDGE
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