In Re Merrill Lynch Trust Co. FSB

Justice HECHT,

joined by Justice MEDINA, and joined by Justice O’NEILL as to Part I, concurring in part and dissenting in part.

By agreeing to arbitrate all controversies with their broker, Merrill Lynch, Pierce, Fenner & Smith, Inc. (“Merrill Lynch”), Juan and Norma Alaniz also agreed to arbitrate claims against Merrill Lynch employees, including Henry Medina, for which Merrill Lynch could be liable because of the employment relationship. But Merrill Lynch cannot be held vicariously liable for Medina’s actions, as it might ordinarily be, because the Alanizes have affirmatively disclaimed such…