Paine, Webber, Jackson & Curtis, Inc. v. McNeal

Shulman, Judge.

Appellants are a securities broker-dealer (Paine, Webber) and an account representative (Skone). McNeal, a former customer, brought suit against both alleging common law fraud and violations of the Securities Act of 1933 (15 USCA § 77a et seq). Appellants made a motion to stay the proceedings and to compel arbitration of the controversies under a clause in the contract between Paine, Webber and McNeal. The trial judge denied both parts of the motion, basing his decision on Georgia policy against "all issues” arbitration. He also held that, even if the arbitration agreement were…