United States District Court, M.D. Florida, Fort Myers Division
OPINION AND ORDER
E. STEELE, SENIOR UNITED STATES DISTRICT JUDGE.
matter comes before the Court on Scottrade, Inc.'s Motion
to Compel Arbitration and to Stay or Dismiss the Proceedings
Against Scottrade, Inc. Pending Arbitration (Doc. #20) filed
on September 1, 2017. Plaintiff filed a Response (Doc. #29),
and Scottrade, Inc. (Scottrade) filed a Reply in Support
(Doc. #53) with leave of Court.
asserts only one claim of breach against Scottrade in his
Complaint (Doc. #1). The remaining claims all pertain to the
United States and those named individually and officially.
Plaintiff alleges that Scottrade sold his shares of both
Sprott Silver Fund and Sprott Gold Fund, and transferred the
proceeds to the Internal Revenue Service (IRS) in May 2013.
(Doc. #1, ¶¶ 16-17.) Plaintiff alleges that
Scottrade breached their contract by selling the shares at
the request of the IRS who is not authorized on his trading
account, and by transferring the proceeds of those sales to
the IRS without his authorization. (Id.,
¶¶ 20-22.) Plaintiff asserts that he did not
volunteer to be a taxpayer for any purported taxes, and that
he provided no Tax Identification Number. Plaintiff alleges
that Scottrade should have demanded proof from the IRS of his
volunteering to pay taxes. (Id., ¶¶ 25,
27.) Plaintiff states that he specifically crossed out Tax ID
Number on his application for a Scottrade account, and only
provided a Social Security Number. (Id., ¶ 18.)
Plaintiff seeks restoration of the Scottrade account, a
principal amount of damages in the amount of $380, 108.00 for
the breach, and pre- and post judgment interest.
(Id., ¶¶ 23, 138.)
first page of the Scottrade Brokerage Account Application
(Doc. #1-1) for a traditional IRA account was signed in 2010,
and is attached to the Complaint. Above the signature line of
the first page is the following statement in all capital
BY SIGNING THIS AGREEMENT I ACKOWLEDGE THAT I HAVE RECEIVED,
READ AND AGREE TO ABIDE BY THE TERMS OF THE ACCOMPANYING
BROKERAGE ACCOUNT AGREEMENT WHICH CONTAINS A PRE-DISPUTE
ARBITRATION CLAUSE AT PARAGRAPH 29.
#1-1, P-1.) An Account Transfer Form is also attached.
(Id.) The full Terms and Conditions (Doc. #20-1,
Exh. B) of the Brokerage Account Agreement are attached to
Scottrade's motion by way of Affidavit of Harry Carr
(Doc. #20-1, Exh. 1), a Senior Paralegal and Records
custodian with Scottrade who reviews such agreements in the
regular course of his business. The arbitration terms are set
forth in paragraphs 28 and 29 as follows:
28. Arbitration Disclosures. This Agreement contains a
predispute arbitration clause. By signing this Agreement, the
parties agree as follows:
(A) All parties to this Agreement are giving up the right to
sue each other in court, including the right to a trial by
jury, except as provided by the rules of the arbitration
forum in which a claim is filed.
(B) Arbitration awards are generally final and binding: a
party's ability to have a court reverse or modify an
arbitration award is very limited.
(C) The ability of the parties to obtain documents, witness
statements and other discovery is generally more limited in
arbitration than in court proceedings.
(D) The arbitrators do not have to explain the reason(s) for
(E) The panel of arbitrators will typically include a
minority of arbitrators who were or are affiliated with the
(F) The rules of some arbitration forums may impose time
limits for bringing a claim in arbitration. In some cases, a
claim that is ineligible for ...