J.D. Morgan Chase Bank, N.A. v. McDonald

Dist. Ct. erred in dismissing plaintiff-Bank’s case seeking to enjoin defendants-customers from arbitrating dispute against bank’s affiliated securities dealer and two of Bank’s employees regarding losses defendants allegedly incurred in setup and oversight of investment account held by plaintiff, but controlled by defendants. Although contract between defendants and affiliated securities dealer contained arbitration clause, plaintiff had standing to file instant lawsuit, even though plaintiff was not named as party in defendants’ lawsuit, since: (1) any arbitration of defendant’s dispute would violate forum selection clause in defendants’ separate contract with plaintiff; and (2) plaintiff would ultimately be responsible for paying any judgment against its employees in defendants’ lawsuit against them. Fact that plaintiff was not named in defendants’ lawsuit did not require different result.