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Rodriguez v. Prudential-Bache Securities

882 F. Supp. 1202 (1995)

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Rodriguez v. Prudential-Bache Securities

United States District Court for the District of Puerto Rico
882 F. Supp. 1202 (1995)

  • Written by Alexander Hager-DeMyer, JD

Facts

Prudential-Bache Securities, Inc. (Prudential) (defendant) withdrew from the Puerto Rican market and terminated several top executives assigned to its Puerto Rico office (executives) (plaintiffs), including José Rodriguez (plaintiff). Rodriguez filed suit against Prudential for wrongful discharge, and Prudential moved to compel arbitration. Several of the other executives filed similar claims directly through arbitration. An arbitration panel ruled on all of the connected claims, issuing an award for the executives. Prudential moved to vacate the award in federal district court, arguing, among other things, that the arbitrators’ award directly conflicted with Puerto Rico’s Law 80, which provided the exclusive remedy for wrongfully discharged employees. Prudential claimed that this conflict demonstrated the arbitrators’ manifest disregard of the law under the Federal Arbitration Act (FAA).

Rule of Law

Issue

Holding and Reasoning (Casellas, J.)

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