Originally from:

Journal of American Arbitration (JAA) - Vol. 3, No. 2

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ARTICLES

The Narrow Grounds of Vacatur: The Fifth
Circuit’s Limited Acceptance of Independent,
Nonstatutory Grounds for Vacating Arbitration
Awards in Brabham v. A.G. Edwards & Sons
By Scott Czerwonka

I. OVERVIEW
The dispute arose over the management of several investment
accounts that Thomas Brabham opened with A.G. Edwards in 1996 for
his two children.1 Instead of following Brabham’s investment
instructions, the broker in charge of the accounts purchased speculative
stocks and made unauthorized trades.2 The broker was also addicted to
drugs and alcohol while employed at A.G. Edwards.3 Although the
investment accounts made some modest gains, Brabham anticipated
more profitable results given the stock market’s boom in the 1990s.4 In
response to the mismanagement and addiction revelations, “Brabham