Mastrobuono v. Shearson Lehman Hutton, Inc.

Antonio Mastrobuono (plaintiff) opened a brokerage account with Shearson Lehman Hutton (defendant) under a Client Agreement providing that disputes would be arbitrated under New York law and NASD rules; Mastrobuono later brought a claim that was arbitrated in his favor, with the arbitrators awarding both actual and punitive damages. Shearson appealed, arguing New York law prohibited punitive damages in arbitration, and the court of appeals agreed with Shearson, prompting Mastrobuono to seek certiorari.