126 So. 3d 137
Miss. Ct. App.2013Background
- Runnels signed a promissory note and Form U4 acknowledging arbitration of disputes with Wells Fargo (NASD/FINRA) and agreed that arbitration awards could be entered as judgments; the NASD later became FINRA, a name-change not creating a new entity.
- Runnels resigned from Wells Fargo on March 9, 2009 and owed $39,150 principal.
- Wells Fargo filed for arbitration with FINRA on August 19, 2009; the arbitrator awarded Wells Fargo $39,150 principal, interest at 5.25%, and $4,927.50 in attorneys’ fees on July 28–29, 2010.
- Wells Fargo moved to confirm the award and for entry of judgment on July 13, 2011; Runnels opposed.
- The circuit court denied the motion to confirm on March 14, 2012; Wells Fargo appeals, arguing Runnels’s vacatur challenge was time-barred and lacked grounds to vacate.
- The Mississippi Supreme Court holds that Runnels’s challenge was timely time-barred and reverses to confirm the award against Runnels.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Runnels timely challenged the award to vacate. | Runnels sought vacatur within FAA/MAA periods. | Runnels’s opposition did not timely file to vacate. | Time-barred; grant to confirm affirmed. |
| Whether the award could be vacated on grounds under FAA/MAA. | The award could be vacated for specified grounds. | No grounds shown; not vacated. | Grounds not met; vacatur denied; award should be confirmed. |
| Whether NASD→FINRA name change affected validity of arbitration agreement. | Name change voids the agreement and arbitrator’s jurisdiction. | Name change did not affect rights; FINRA had jurisdiction. | FINRA had jurisdiction; agreement valid; award enforceable. |
Key Cases Cited
- Wilson v. Greyhound Bus Lines, Inc., 830 So.2d 1151 (Miss. 2002) (defer to ARB; limited review for vacatur under 11-15-23)
- Rigby v. Roadway Express, Inc., 680 F.2d 342 (5th Cir. 1982) (vacatur period governs under MAA)
- Margerum v. Bud’s Mobile Homes, Inc., 823 So.2d 1167 (Miss. 2002) (trial court cannot substitute merits for arbitration)
- Riccard v. Prudential Ins. Co., 307 F.3d 1277 (11th Cir. 2002) (standard of review for arbitration orders)
- Hall Street Assocs., L.L.C. v. Mattel, Inc., 552 U.S. 576 (U.S. 2008) (exclusive grounds for vacatur in FAA)