Carter Ledyard Rebuffs Motion to Compel Arbitration

Carter Ledyard successfully rebuffed a motion by defendant, a former employee of client The Ayco Company, to compel FINRA arbitration of a dispute arising from breach of an Ayco employment agreement. The motion asserted that an affiliate of Ayco was a “Member” firm for FINRA purposes , that the Ayco employee was an “Affiliated Person” of the “Member” firm and that Ayco, a non-member of FINRA, should nevertheless be required to arbitrate its employment dispute with the former employee based on the corporate relationship between Ayco and its affiliate under theories of estoppel, agency or piercing the corporate veil. The Court concluded that none of these theories had been established by the evidence. The case, asserting claims of misappropriation of trade secrets, breach of restrictive covenants and breach of fiduciary duty, may therefore proceed in the Federal District Court for the Northern District of New York. Ayco was represented by Lawrence F. Carnevale and Emily Milligan.

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