Stephen P. Flanagan v. Prudential-Bache Securities, Inc.

Summary

The New York Court of Appeals reversed the Appellate Division and granted Prudential‑Bache's motion to compel arbitration of a defamation claim brought by former registered representatives. The Court held that the employment agreements and New York Stock Exchange rules required arbitration of the dispute, even though the alleged defamatory statements were made after termination, and declined to follow the Second Circuit's Coudert decision. It also affirmed that an order compelling arbitration is a final, appealable order.