Moscatiello v. Hilliard

OPINION

Justice EAKIN.

Appellants invested $1.5 million in a single mutual fund managed by appellees. Appellants signed customer agreements with appellees containing an arbitration clause and a choice of law provision. The arbitration clause stated any disputes would be settled in arbitration under National Association of Securities Dealers (NASD) rules, which the Federal Arbitration Act (FAA), 9 U.S.C. § 1 et seq., governs. The choice-of-law provision stated Pennsylvania law would govern.

After losing $574,000 in the mutual fund, appellants filed multiple claims with the NASD against appellees…