Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

SIEGEL v. DAIWA SECS. CO.

January 5, 1994

PAUL E. SIEGEL, Plaintiff,
v.
DAIWA SECURITIES CO. LTD., KOJI YONEYAMA, YUJI RAI and HIROSHI TSUNODA, Defendants.



The opinion of the court was delivered by: THOMAS P. GRIESA

 Plaintiff sues alleging race and national origin discrimination as well as tortious interference with contractual rights.

 The action arises out of plaintiff's employment with Daiwa Securities America Inc. ("Daiwa America"). However, he is not suing Daiwa America in this action. The action is brought against Daiwa America's parent, Daiwa Securities Co., Ltd. ("Daiwa Japan"); Koji Yoneyama, a director of Daiwa Japan, who was president of Daiwa America during plaintiff's employment, and is now chairman of Daiwa America; Yuji Rai, an officer of Daiwa Japan; and Hiroshi Tsunoda, who was plaintiff's supervisor at Daiwa America and is now with Daiwa Japan.

 Plaintiff previously initiated an arbitration against Daiwa America, Yoneyama and Tsunoda. The arbitrators decided against plaintiff on all issues.

 Defendants move to confirm the arbitration award and to dismiss the present action on the ground that it is barred by the arbitration. Also, they seek sanctions against plaintiff for bringing the present action.

 Plaintiff has filed a cross-motion, requesting an order "striking" defendants' motion, rescinding the arbitration agreement, and granting other forms of relief.

 As to the motion to confirm the arbitration award, only two of the defendants -- Yoneyama and Tsunoda -- were parties to the arbitration. The motion to confirm will be treated as their motion, and it is granted. In addition, all defendants are entitled to a ruling that the arbitration award bars plaintiff's claims in the present action and that the action should be dismissed. Plaintiff's motion is denied in its entirety.

 Defendants' application for sanctions is denied.

 FACTS

 Daiwa America hired plaintiff in 1989 as its vice president in charge of real estate investment banking. Plaintiff worked in that capacity until February 1990 when his employment was terminated. Plaintiff alleged in an arbitration proceeding, and now alleges in this lawsuit, that he was terminated for discriminatory reasons and in violation of his contract of employment.

 The Arbitration

 In May 1990 plaintiff submitted his dispute to arbitration under the auspices of the National Association of Securities Dealers ("NASD"), pursuant to the agreement contained in his application to be a member of the NASD (the so-called Form U-4). The U-4 provides that the applicant will arbitrate "any dispute, claim or controversy that may arise between . . . [the applicant] and . . . [the applicant's] firm, or a customer or any other person, that is required to be arbitrated under the rules . . . of the [NASD]." Section 8 of the NASD Code of Arbitration states that arbitrable issues include any dispute "arising out of or in connection with the business of any member." According to the Code, such disputes may occur between a member and another member, between a member and a person associated with a member, or between people associated with members.

 The respondents in plaintiff's arbitration claim were Daiwa America; Koji Yoneyama, then president of Daiwa America; Hiroshi Tsunoda, plaintiff's supervisor at Daiwa America; Phillip Zachary, executive vice president of Daiwa America; and Alan Rosenblum, general counsel of Daiwa America. Both plaintiff and the respondents were subject to arbitration under the NASD Code.

 Plaintiff's Statement of Claim contained seven counts. Two additional allegations were presented in later submissions to the arbitrators. Although they were not formally presented as claims, they are contained in the following list as items eight and nine. The allegations in the seven counts in the Statement of Claim and in the two additional items later added were as follows:

 
1) Daiwa America terminated plaintiff's employment wrongfully to avoid paying him bonuses and commissions generated by a real estate investment plan plaintiff developed, which involved an arrangement with Goldman Sachs as well as other real estate deals, having an anticipated value of $ 1.2 billion. This claim was alleged against Daiwa America and Rosenblum.
 
2) Daiwa America terminated plaintiff's employment for racially and ethnically discriminatory reasons. Plaintiff is a Jewish American and Daiwa America is a Japanese-owned company. This claim was alleged against Daiwa America.
 
3) Plaintiff was defamed by the circulation of a letter of Reliance Group Holdings, Inc. attacking plaintiff. This claim was alleged against all respondents.
 
4) Plaintiff's personal belongings were wrongfully withheld after his employment was terminated. This claim was alleged against Daiwa America.
 
5) Plaintiff's privacy was invaded by the inspection of the personal belongings withheld. This claim was alleged against all respondents.
 
6) Plaintiff's business arrangements following his termination were tortiously interfered with. This claim was alleged against all respondents.
 
7) The contract to pay plaintiff 15% of revenues generated by his business dealings was breached. This claim was ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.