Badgerow v. REJ Properties, Inc. et al

RESPONSE to Motion

E.D. La.February 25, 2019

1 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA DENISE A. BADGEROW, * CIVIL ACTION on behalf of herself and a class of those * similarly situated, * NO. 2:17-cv-09492 Plaintiffs, * * SECTION “A” v. * * JUDGE JAY C. ZAINEY REJ PROPERTIES, INC. D/B/A * WALTERS, MEYER TROSCLAIR & * MAG. DIV. (2) ASSOCIATES, AND AMERIPRISE * FINANCIAL SERVICES, INC., * MAG. JUDGE WILKINSON * Defendants. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * AMERIPRISE FINANCIAL SERVICES, INC.’S RESPONSE IN SUPPORT OF MOTION OF REJ PROPERTIES, INC. TO CONFIRM ARBITRATION AWARD Ameriprise Financial Services, Inc. (“Ameriprise Financial”) supports and joins in full the Motion to Confirm Arbitration Award (Rec. Doc. 99) filed by Defendant REJ Properties, Inc. (“REJ”) (the “Motion to Confirm”). Ameriprise Financial respectfully requests that this Court lift the stay that the Court ordered on January 10, 2018, grant the Motion to Confirm, and enter judgment dismissing Ameriprise Financial from this action with prejudice. I. Background. On January 10, 2018, this Court granted Ameriprise Financial’s motion to compel arbitration of all claims brought by Plaintiff Denise Badgerow against Ameriprise Financial (the “Arbitration Order”). (Rec. Doc. 47.) This Court also stayed all claims against Ameriprise Financial pending arbitration. (Id.) Badgerow and Ameriprise Financial arbitrated Badgerow’s claims on August 27 and 28, 2018, at a hearing before a panel of Financial Industry Regulatory Authority (“FINRA”) arbitrators. (See Mem. Supp. Mot. Confirm Arb. Award (“REJ Brief”), Exhibit H (“FINRA Award”) at 4 (Rec. Doc. 99-2 at 78-87).) Case 2:17-cv-09492-JCZ-JCW Document 100 Filed 02/25/19 Page 1 of 4 2 At the close of Badgerow’s case in chief, Ameriprise Financial’s counsel made an oral motion to dismiss all claims against it, which the panel granted at the hearing. (FINRA Award at 5 (Rec. Doc. 99-2 at 82).) The panel executed its written award dismissing all of Badgerow’s claims with prejudice on December 27, 2018. (Id.) REJ filed its Motion to Confirm Arbitration Award on February 15, 2019, and will bring it for hearing on March 6. (Rec. Doc. 99, 99-3.) II. Argument. Ameriprise Financial joins and incorporates by reference the arguments set out by REJ in its brief supporting its Motion to Confirm. (Rec. Doc. 99-1.) Ameriprise Financial submits this brief Response in Support for two additional reasons, set out below. First, Ameriprise Financial is the party that successfully moved to compel arbitration, and so its interests are served by its joining REJ’s motion and requesting that that the Court lift its stay. As this Court noted in the Arbitration Order, “[i]t is beyond dispute” that Badgerow and Ameriprise Financial are parties to three separate agreements to arbitrate. (Rec. Doc. 47 at 5.) In fact, one of the three agreements to arbitrate conclusively bound Badgerow to (1) arbitrate any claims against Ameriprise Financial and (2) have any arbitration award rendered against her “entered as a judgment in any court of competent jurisdiction.” (REJ Brief, Exhibit C at Sec. 15A.5 (Rec. Doc. 99-2 at 27).) Given Badgerow’s binding commitment and the Court’s decision to stay Badgerow’s claims against Ameriprise Financial pending arbitration, the resulting award deserves to be confirmed in full pursuant to the Federal Arbitration Act (“FAA”), with judgment entered accordingly. Second, Ameriprise Financial joins REJ’s motion to ensure that the relief granted to Ameriprise Financial by the FINRA panel is reflected in the resulting judgment in this action. Specifically, Ameriprise Financial respectfully requests that all claims against it in this action be Case 2:17-cv-09492-JCZ-JCW Document 100 Filed 02/25/19 Page 2 of 4 3 dismissed with prejudice, as provided in the arbitration award, so that Ameriprise Financial may receive the full and complete relief to which it is entitled under the FAA. 9 U.S.C. § 9; Berk- Cohen Associates, LLC v. Orkin Exterminating Co., 264 F. Supp. 2d 448, 451 (E.D. La. 2003), aff’d, 91 F. App’x. 969 (5th Cir. 2004). III. Conclusion. For the reasons set forth above, Ameriprise Financial respectfully requests that this Court: 1. Lift the stay that the Court ordered on January 10, 2018; 2. Grant the Motion to Confirm; and 3. Enter judgment dismissing Ameriprise Financial from this action with prejudice. Respectfully submitted, Dated: February 25, 2019 DORSEY & WHITNEY LLP BY: /s/ John T. Sullivan MELISSA RAPHAN, T.A. (admitted pro hac vice) JOHN T. SULLIVAN (admitted pro hac vice) 50 South Sixth Street, Suite 1500 Minneapolis, MN 55402 Telephone: (612) 343-7907 Facsimile: (612) 340-2777 E-mail: raphan.melissa@dorsey.com E-mail: sullivan.jack@dorsey.com Case 2:17-cv-09492-JCZ-JCW Document 100 Filed 02/25/19 Page 3 of 4 4 BAKER, DONELSON, BEARMAN, CALDWELL & BERKOWITZ, PC /s/ Jennifer McNamara NANCY SCOTT DEGAN (La. 01819) JENNIFER McNAMARA (La. 23946) 201 St. Charles Avenue, Suite 3600 New Orleans, Louisiana 70170 Telephone: (504) 566-5200 Facsimile: (504) 636-4000 E-mail: ndegan@bakerdonelson.com E-mail: jmcnamara@bakerdonelson.com ATTORNEYS FOR DEFENDANT AMERIPRISE FINANCIAL SERVICES, INC. CERTIFICATE OF SERVICE I hereby certify that on this 25th day of February, 2019, a copy of the foregoing pleading was filed electronically with the Clerk of Court using the CM/ECF system. Notice of this filing will be sent to all counsel of record by operation of the court’s electronic filing system. /s/ John T. Sullivan JOHN T. SULLIVAN Case 2:17-cv-09492-JCZ-JCW Document 100 Filed 02/25/19 Page 4 of 4