Memorandum Opinion in Support of Order Directing Arbitration of State Court Claims

Before the court is Merrill Lynch, Pierce, Fenner & Smith, Inc.’s (“Merrill Lynch”) motion for an order directing arbitration, sought in accordance with § 4 of the Federal Arbitration Act.  See 9 U.S.C. § 4.  The defendants in this matter, James Coe, John Wade, Robert and Joann Harmon, and Ora Robertson, Jr. (“state court plaintiffs”) are plaintiffs in various proceedings pending in the Circuit Court of McDowell County, West Virginia (“state court actions”).  Pursuant to § 4 the court conducted a hearing on January 6, 2004, and determined that the making of an agreement to arbitrate was “in issue.”  The court accordingly conducted a bench trial on February 27, 2004, in Charleston, West Virginia.  At this trial, the parties presented evidence concerning the alleged arbitration agreements and any defenses applicable to them.  The court has concluded that it must order the state court plaintiffs to arbitrate the claims being litigated in the state court actions and has accordingly issued Findings of Fact and Conclusions of Law in support of its ruling.  This memorandum opinion details the court’s legal and factual findings and discusses the critical issue in this case, whether West Virginia public policy prohibits enforcement of the arbitration agreements at issue here.¹