Rob Gilbreath Secures Texas Supreme Court Victory for Merrill Lynch
HPTY Appellate Specialist Rob Gilbreath secured an important victory for client Merrill Lynch in a Texas Supreme Court decision issued June 25, 2010. Two MetroPCS subsidiaries - MetroPCS Communications and MetroPCS Wireless - asserted claims against Merrill Lynch arising out of their purchase of auction rate securities. Wireless was party to an arbitration agreement with Merrill Lynch, but Communications was not. The trial court stayed Wireless' claims until it can be determined whether Wireless will proceed as a part of a federal court class action against Merrill Lynch. If it does not, Wireless will be required to arbitrate its claims against Merrill Lynch. The trial court denied Merrill Lynch's request to stay Communications' claims pending completion of the potential arbitration. The Texas Supreme Court held this was an abuse of discretion and that Communications' claims must be stayed until completion of the likely arbitration between Wireless and Merrill Lynch.