When a claimant chooses to litigate a discrimination claim, a court must consent to a respondent’s request to transfer claims from arbitration to court.

The plaintiff, a former employee of the defendant, filed an arbitration in FINRA asserting various non-discrimination claims, including tortious interference with contractual relations and infliction of emotional distress. Neither party disputed that such claims were subject to mandatory arbitration. Thereafter, the plaintiff filed a state court action alleging various discrimination claims, including race discrimination under Title VII of the Civil Rights Act. The defendant moved to consolidate the FINRA action with the state court action. The court denied this request, refusing to exercise jurisdiction over the FINRA claims. In reaching its conclusion, the court noted that, while FINRA Rule 13803 permits a defendant to transfer claims to court from arbitration when the plaintiff elects to litigate statutory discrimination claims, the transfer requires the appropriate court’s consent.

_{Case Law Alerts, 2^nd Quarter, April 1, 2016}

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