Isabel Romeu Vda, De Fuertes v. Drexel, Burnham, Lambert, Inc.
Docket: 88-1448
Court: Court of Appeals for the First Circuit; October 5, 1988; Federal Appellate Court
Plaintiffs sought the delivery of securities allegedly unlawfully held by defendants, who moved to compel arbitration based on a margin agreement. Plaintiffs contested the validity of the margin agreement, citing issues such as forgery. The parties agreed to a trial before a magistrate, who ultimately upheld the validity of the margin agreement and ordered arbitration while retaining jurisdiction over the case. Plaintiffs appealed the order directing arbitration, but the appellate court determined it lacked jurisdiction, as the order was not a final judgment—no complete resolution of the controversy had occurred. The court noted that the case had merely shifted to arbitration with an expectation of returning to the magistrate for a final judgment. The court also rejected the plaintiffs' argument that the order was appealable under the Cohen collateral order doctrine, asserting that any challenges to the arbitration agreement could be addressed after a final judgment post-arbitration. The court emphasized that the right to a judicial forum is not forfeited by the postponement of enforcement. Plaintiffs’ request to treat their appeal as a petition for mandamus was denied, leading to the dismissal of the appeal and the denial of the mandamus petition.