Javitch v. First Union Securities, Inc.

This case involved a dispute between a financial advisor named Javitch and several investment firms, including First Union Securities, Charles Schwab, Morgan Stanley Dean Witter, and Fifth Third/Maxus Securities. Javitch brought multiple claims against these companies, including allegations of negligence, breach of contract, fraud, whistleblower retaliation, and conversion of assets. The main issue was whether Javitch had to resolve his disputes through private arbitration (as specified in agreements he had signed) rather than in regular court. The lower court initially said no, allowing the case to proceed in court. However, the appeals court disagreed and sent the case back to the lower court for reconsideration. The appeals court ruled that even though a receiver (someone appointed to manage assets) was involved in the case, the arbitration agreements Javitch had signed were still likely valid and enforceable. This meant his claims should probably be handled through private arbitration instead of in court. This matters for workers because it shows how arbitration clauses in employment agreements can be very difficult to avoid, even in complex situations involving multiple parties. Workers should carefully consider any arbitration requirements when signing employment contracts, as these clauses typically limit their ability to sue in court.