Receiver Must Arbitrate Clawback Action, 11th Cir. Affirms

TAMPA, Fla. — A receiver appointed by a federal court is bound to adhere to existing arbitration agreements while performing his activities as a receiver, a federal appeals court has affirmed, finding no conflict between the Federal Arbitration Act and 28 U.S.C. § 754.

In a Feb. 10 opinion, the 11th Circuit U.S. Court of Appeals explained that § 754 does not designate district courts as having complete jurisdiction and control of receivership properties; rather, it grants that control to a receiver who is appointed by the court.

In January 2009, Burton Wiand was appointed the receiver of six hedge …