In Re Merrill Lynch Trust Company Fsb, Merrill Lynch Life Insurance Company, and Henry Medina, Relators

Summary

The Texas Supreme Court held that the Alanizes must arbitrate their claims against Merrill Lynch employee Henry Medina because those claims are in substance against Merrill Lynch, but the affiliates ML Trust and ML Life are not bound by the arbitration agreement and equitable estoppel does not compel arbitration with them. The Court also ordered a stay of the litigation against the affiliates pending completion of the arbitration with Medina. Justice Johnson dissented in part, arguing that equitable estoppel should bind the affiliates, while Justice Hecht dissented in part, maintaining that the affiliates are correctly excluded.