Kassell v. Crafton, No. A-12-CV-669-LY, slip op. (W.D. Tex. Dec. 18, 2013)(Austin, M.J.)

Magistrate Judge Austin recommended that Judge Yeakel compel arbitration in this dispute pitting an ex-NFL player and his wife against their former investment advisor and the advisor’s employer.  Slip op. at 26.  The disputed provision required arbitration of that “any controversy between the Advisor and the Client arising out of Adviser business or this agreement . . ..”  Id. at 4. 

After noting the policy reasons favoring arbitration, Magistrate Judge Austin rejected the couple’s reading of the provision as permissive, as well as their assertion that only the “Advisor” (and not his employer) could invoke arbitration. Id. at 7-19.  He also was not persuaded by their suggestion that a separate arbitration provision was inoperative because it was in connection with a paid-off loan, and their contention that the employer waived arbitration by seeking a decision on the merits, including by filing a motion for summary judgment.  Id. at 23-26.