Alford v. Dean Witter Reynolds, Inc.

Joan Alford (plaintiff) was employed as a stockbroker for Dean Witter Reynolds, Inc. (Dean Witter) (defendant). Alford’s employment with Dean Witter required Alford to register with the New York Stock Exchange (NYSE) and the National Association of Securities Dealers, Inc. (NASD). Alford’s registration agreements with the NYSE and the NASD contained arbitration clauses. Alford sued Dean Witter for alleged age discrimination in violation of Title VII of the Civil Rights Act of 1964. Dean Witter moved to compel arbitration based on the arbitration provisions contained in the registration agreements. The district court denied the motion, and Dean Witter appealed. After the district court was affirmed, Dean Witter appealed to the United States Supreme Court. The United States Supreme Court vacated the district court’s decision and remanded the case for further consideration. On remand, the district court ordered the parties to go to arbitration and, rather than staying the action until after arbitration, the district court dismissed Alford’s lawsuit with prejudice. Alford appealed, arguing for the first time on appeal (1) that Alford had been fraudulently induced to work for Dean Witter; (2) that the arbitration clauses contained in the registration agreements were contracts of adhesion, meaning that they were not negotiable; and (3) that Dean Witter had waived the right to arbitration by asserting a counterclaim in the arbitration proceeding that was held after the district court dismissed the case. Alford never raised these arguments to the district court.