82 (explaining that the plaintiff ended the employment relationship "before the alleged false statements were made" and that it was "a short road from here to the conclusion that this controversy is not controlled by an arbitration clause that governs only employment or termination"). Thus, Coudert is factually distinguishable from the case at hand because the alleged tortious conduct occurred during the course of Stone's employment relationship with Merchant. More importantly, the Second Circuit has subsequently rejected its approach in Coudert as "too cramped." Fleck, 891 F.2d at 1051. The Second Circuit upheld arbitration in Fleck on facts similar to those in which it had denied arbitration in Coudert and expressly adopted the broader interpretation of "arising out of" employment that had been advanced by the Eighth Circuit in Morgan, 729 F.2d 1163, and the Sixth Circuit in Aspero, 768 F.2d 106. See Fleck, 891 F.2d at 1052-53. As discussed above, under the standards set forth in Morgan and Aspero and subsequently adopted in Fleck, Stone's defamation claim is arbitrable.
As for Zechman, the second case that Stone cites in support of his contention that his defamation claim is not arbitrable, Stone's reliance on this case is misplaced. Zechman involved a dispute between two members of the Chicago Board of Trade ("CBOT") who had agreed to arbitrate any dispute "arising out of the Exchange business of such parties." See Zechman, 742 F. Supp. at 1362 (emphasis added). The court concluded that the defamation claims, like other of the plaintiff's claims which the court had found to be primarily employment-related, were too far removed from the exchange business of the parties to fall within the scope of exchange-related arbitration provision. See id. at 1370. Because the issue in this case is whether Stone's defamation claim is employment-related, rather than whether it is exchange-related under CBOT rules, Zechman provides no support for Stone's contentions.
Little needs to be said with respect to Stone's claim under Pennsylvania's Wage Payment and Collection Law. The only argument Stone advances for why these claims are not arbitrable is that Zechman held claims under Illinois's Wage Payment and Collection Law nonarbitrable. See Pl.'s Resp. Def.'s Mot. Dismiss Compl. at 26. As already discussed, Zechman has no bearing on this case because it involved an interpretation of a CBOT rule requiring arbitration of disputes concerning the exchange-related business of CBOT members, rather than employment-related disputes. Indeed, the court in Zechman held that the statutory wage claims were nonarbitrable precisely because they "turn exclusively on the independent employer-employee relationship" and thus were "too remote" to implicate the parties' exchange-related business. See Zechman, 742 F. Supp. at 1369. Because Stone has offered no other reason for why these claims are not arbitrable, and because I find no real issue that these claims arise out of Stone's employment with Merchant, I conclude that Stone's claims under Pennsylvania's Wage Payment and Collection Law are arbitrable.
In conclusion, I have found that Merchant may enforce the U-4 arbitration agreement as an intended third-party beneficiary, that Stone agreed to arbitrate all disputes with Merchant arising out of his employment or the termination thereof, and that all of the claims Stone alleges in his complaint against Merchant arise out of his employment with Merchant. Therefore, because I find that all of the issues involved in this action are referable to arbitration under the written agreement in the U-4 application to arbitrate, I will stay the proceedings in this action under § 3 of the FAA until arbitration has been had between the parties pursuant to terms of the U-4 arbitration agreement. An order will be entered accordingly.
Anita B. Brody, J.
AND NOW, this 16th day of December, 1996, upon consideration of Merchant's Renewed Motion Pursuant to Federal Rule of Civil Procedure 12(b)(6) and 56 for Summary Judgment, or, in the Alternative, for an Order Staying the Case and Compelling Arbitration and all responses thereto, IT IS ORDERED that:
(1) Merchant's Motion Pursuant to Federal Rule of Civil Procedure 12(b)(6) and 56 for Summary Judgment is DENIED without prejudice; and
(2) Merchant's Motion for an Order Staying the Case and Compelling Arbitration is GRANTED and a stay of all proceedings in this action is entered under § 3 of the FAA until arbitration has been had between the parties pursuant to the terms of the U-4 arbitration agreement.
Anita B. Brody, J.