Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_05-cv-00650/USCOURTS-cand-5_05-cv-00650-1/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Breach of Contract

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Case No. C-05-650-JF (EAI)

ORDER DENYING DEFENDANT’S EX PARTE APPLICATION TO CONTINUE ARBITRATION HEARING

(JFLC2)

*E-Filed 8/1/05*

NOT FOR CITATION

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

CITIGROUP GLOBAL MARKETS, INC.,

 Plaintiff,

 v.

CARTER D. CRUM,

 Defendant.

Case Number C-05-650-JF (EAI)

ORDER DENYING DEFENDANT’S

EX PARTE APPLICATION FOR

CONTINUANCE OF ARBITRATION

[Docket No. 33]

In this action, Plaintiff Citigroup Global Markets, Inc., referred to herein as “Smith

Barney,” sues a former employee, Defendant Carter D. Crum (“Crum”), for breach of contract,

misappropriation of trade secrets and related claims. Crum joined Smith Barney as a financial

consultant in August 1999. He resigned without prior notice in early January 2005 and later the

same day began employment with one of Smith Barney’s competitors, Nollenberger Capital

Partners, Inc. (“Nollenberger”). Smith Barney filed the complaint in this action on February 11,

2005, alleging that Crum used Smith Barney’s proprietary and confidential customer information

to solicit Smith Barney customers to transfer their accounts to Nollenberger.

On February 17, 2005, this Court granted in part Smith Barney’s application for a

temporary restraining order and on February 28, 2005, the Court granted in part Smith Barney’s
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Case No. C-05-650-JF (EAI)

ORDER DENYING DEFENDANT’S EX PARTE APPLICATION TO CONTINUE ARBITRATION HEARING

(JFLC2)

application for a preliminary injunction and granted Smith Barney’s motion for leave to conduct

expedited discovery. The parties have been in the process of conducting discovery since that

time.

In April, 2005, the parties submitted the matter to the National Association of Securities

Dealers (“NASD”) for binding arbitration. The actual arbitration date was not scheduled at that

time, however. On July 22, the parties submitted to the Court a joint stipulation indicating that

they had selected NASD arbitration as their ADR process. Under the NASD procedures, an

arbitration hearing is set within fifteen days after either party requests such hearing. Smith

Barney requested an arbitration hearing on July 18, 2005. The NASD has notified the parties that

it has set an arbitration hearing for August 3, 2005.

On July 18, 2005, the same day Smith Barney made its request for an arbitration hearing,

Crum filed a motion to compel depositions and production of documents in this Court. Crum

asserts that this discovery is necessary to prepare for the arbitration, and requests that this Court

continue the arbitration for two months. Smith Barney will not stipulate to a continuance.

The Court concludes that Crum’s request for continuance properly should be made to the

NASD. The parties have stipulated to submit themselves to NASD arbitration under that

organization’s procedures. Crum has failed to cite any authority in support of his request that

this Court interject itself into those procedures. Accordingly, Crum’s motions is DENIED

WITHOUT PREJUDICE to the presentation of a motion for continuance to the NASD or the

arbitrator assigned to the matter.

IT IS SO ORDERED.

DATED: August 1, 2005

/s/ electronic signature authorized 

__________________________________

JEREMY FOGEL

United States District Judge
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Case No. C-05-650-JF (EAI)

ORDER DENYING DEFENDANT’S EX PARTE APPLICATION TO CONTINUE ARBITRATION HEARING

(JFLC2)

This Order was served on the following persons:

Howard O. Boltz , Jr hoboltz@bryancave.com,

Charles M. Louderback akay@louderback.org,

jschreibstein@louderback.org;ehoffman@louderback.org;jhudson@louderback.org;mlopez@lou

derback.org;malarcon@louderback.org;bfrankson@louderback.org