Stanton v. Paine Webber Jackson & Curtis Inc.

685 F. Supp. 1241 (1988)

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Stanton v. Paine Webber Jackson & Curtis Inc.

United States District Court for the Southern District of Florida
685 F. Supp. 1241 (1988)

Facts

Stanton (plaintiff) entered into a contract with Paine Webber Jackson & Curtis, Inc. (Paine Webber) (defendant) that contained an arbitration clause. A dispute arose between the parties, and Stanton filed a suit against Paine Webber in the United States District Court for the Southern District of Florida, citing violations of the Commodity Exchange Act, Florida securities law, and common law. Paine Webber filed a motion seeking arbitration under the contract, and the court granted the motion, ordering the arbitration to proceed pursuant to the Federal Arbitration Act (FAA). Before a hearing was scheduled to begin before the American Arbitration Association (AAA), Paine Webber requested that the AAA panel issue subpoenas to certain third parties. Paine Webber also sought records of commodities accounts maintained by Stanton with certain firms and Stanton’s tax returns. Paine Webber claimed that production of these documents was necessary because the documents tended to disprove certain claims made by Stanton. The AAA panel issued several of the requested subpoenas requiring the pre-hearing production of documents to Paine Webber. Stanton filed a motion, seeking to enjoin Paine Webber Jackson & Curtis, Inc., from serving subpoenas for the attendance of witnesses or from producing documents. Stanton argued that issuing these subpoenas to third parties violates the law and the production of documents constitutes impermissible pre-hearing discovery.

Rule of Law

Issue

Holding and Reasoning (Gonzalez, J.)

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