Judge Lawrence Kahn
The court’s April 5 order granting Haggerty a temporary restraining order (TRO) partially enjoining arbitration before the Financial Industry Regulatory Authority (FINRA) also scheduled an April 19 evidentiary hearing to clarify his business dealings with defendants. On April 12 counsel for defendants McDowell and Brannon filed papers supporting the hearing and urging denial of Haggerty’s request for a preliminary injunction. The court ordered dismissal of Haggerty’s complaint as against McDowell and Brannon after finding them no longer parties adverse to Haggerty for Article III "case or controversy" purposes. The April 5 order enjoined only arbitration of defendant Boylan’s third-party claim against Haggerty. It expressly declined to rule on the arbitrability of McDowell’s and Brannon’s claim against Boylan. Boylan’s third-party claim against Haggerty would have no effect on McDowell’s or Brannon’s ability to recover against Boylan before FINRA. However, a case or controversy still exists between Haggerty and Boylan. As other issues require an evidentiary hearing, and because Boylan improperly tried to file papers through counsel for McDowell and Brannon, the TRO was extended, and the evidentiary hearing adjourned, until May 2.
