Renard v. Ameriprise Fin. Servs., Inc.

When Ameriprise Financial fired Renard, a financial adviser, for violation of the franchise agreement between the two, Ameriprise claimed that Renard owed it $530,000 on loans made to help Renard build his franchise. Renard disagreed. Ameriprise initiated arbitration under the agreement, which provides that Minnesota law governs, except “all issues relating to arbitrability,” are “governed by the terms set forth in [the] agreement, and to the extent not inconsistent with this agreement, by the rules of arbitration of” the Financial Industry Regulatory Authority. Wisconsin arbitrators rejected Renard’s counterclaims and awarded Ameriprise most of what it sought. Renard filed suit to vacate the award. The court confirmed the award and required Renard to pay additional interest. The Seventh Circuit affirmed, rejecting Renard’s argument that Ameriprise’s counsel procured the award through fraud and that the arbitrators acted in manifest disregard of the Wisconsin Fair Dealership Law and Minnesota tort law. His showing was far short of the high standard needed to upset the outcome of an arbitral proceeding. The panel did not issue a written opinion, so it was not clear how it reached its conclusions, but nothing suggested that it strayed so far that the “manifest disregard” standard was triggered. View "Renard v. Ameriprise Fin. Servs., Inc." on Justia Law