Arbitrator Rejects Putative Class; Trial Court Resumes Jurisdiction

In Clark v. First Union Securities, Inc., defendant Wachovia obtained a trial court ruling that a putative class and class action causes of action were to be resolved in arbitration. Then, in a bold effort to have its cake and eat it, too, Wachovia obtained a ruling from the arbitrators that these causes of action were not eligible for arbitration. Thereafter, the trial court, on its own motion, reconsidered its first ruling and issued an order holding that the putative class and class causes of action were to be heard in the trial court. Wachovia appealed. The Court of Appeal affirmed. Very interesting reading can be had in Clark v. First Union Securities, Inc. available here in pdf or word format.