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STATE OF MICHIGAN
COURT OF APPEALS


JAMES D. LANDSBERG, COORDINATED CAPITAL SECURITIES, INC. and ANTHONY J. AMARADIO, Plaintiffs-Appellees, v THOMAS F. BEATTIE, BARBARA M. BEATTIE, ANTHONY GUSMANO, as Trustee for the TenibacGraphion, Inc. Employee Profit Sharing Plan, LESLIE E. ILEY, AUDREY M. ILEY, IRENE K. KOKUBA, LORRAINE A. KORAL, SANDRA L. LEAHY, RODNEY LEE MICK, CORLISS L. MICK, ELDON WATERLOO, JR., JOYCE WATERLOO, WAYNE E. WILLIAMS, and KATHY A. WILLIAMS, Defendants-Appellants.

UNPUBLISHED November 21, 1997

No. 199788 Oakland Circuit Court LC No. 95-492567-CK

Before: Saad, P.J., and O'Connell and Matuzak,* JJ. PER CURIAM. Defendants appeal the circuit court's order granting plaintiffs' motions for summary disposition and permanent injunctive relief. We affirm. Defendants purchased bonds from plaintiffs, who were brokers and members of the National Association of Securities Dealers (NASD). After these bonds proved worthless, defendants sought to arbitrate their claims against plaintiffs before the NASD. In response, plaintiffs sought injunctive relief before the circuit court to bar defendants from bringing their claims to arbitration. Plaintiffs argued that the claims were not eligible for arbitration because they were untimely under Section 15 of the NASD Code. The circuit court agreed with plaintiffs, and permanently enjoined defendants from arbitrating their claims before the NASD. * Circuit judge, sitting on the Court of Appeals by assignment. -1

I. In their brief on appeal, defendants argue that 15 USC 78aa gives the Federal courts exclusive jurisdiction over this dispute. However, during oral argument defense counsel conceded that the circuit court had jurisdiction over the subject matter. The Federal Sixth Circuit Court of Appeals has held that breach of NASD rules, including NASD Code

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Michigan Law