Opinion ID: 735522
Heading Depth: 2
Heading Rank: 2

Heading: The Matuses

Text: 24 David and Melinda Matus invested $93,000 in PSI partnerships, and initiated a NYSE arbitration against PSI in April 1994. They received the class action notice on October 21, 1995, but did not inform counsel or respond, apparently believing that no action was necessary. 25 Arbitration hearings in San Diego continued from October 25th to the 27th, 1995. PSI participated without requesting a stay. On October 30, 1995, on the ground of witness unavailability, PSI requested an adjournment until December 1995. The opt out date was not mentioned during the arbitration proceedings. On November 7, PSI called the Matuses' attorney to find out whether they had opted out by the deadline. Advised that they had not, PSI stated its intention to move for a stay. On November 9, the Matuses' counsel--who had timely opted out on behalf of other clients in the class--sent an opt out request to the claims administrator. 26 On November 16, 1995, the Matuses--along with Nilson--moved for permission to file an untimely exclusion request, in order to proceed with their individual arbitrations. As with Nilson, the district judge noted that the Matuses' attorney had timely opted out other clients, and concluded that the Matuses had made a deliberate choice to remain a part of the class. The motion was therefore denied on November 29, 1995. 27 We conclude that the district court did not abuse its discretion in finding that the Matuses had not demonstrated excusable neglect. Whether or not the failure of the Matuses' counsel to opt out on their behalf supports an inference of deliberate choice, the notice expressly stated that potential class members who had pending [their] own claim or action against any person or entity in connection with an investment in any of the Partnerships should check with their lawyer. The Matuses, so warned, did nothing to protect their rights. We cannot say that the district court's denial of their motion was an abuse of discretion.