Morgan Stanley Strikes Out in 2nd Cir. Deferred Adviser Pay Spat

Morgan Stanley failed to convince the Second Circuit to undo portions of a district court decision that the company says improperly addressed the merits of a deferred pay battle that’s been sent to arbitration.

The US Court of Appeals for the Second Circuit lacks jurisdiction under the Federal Arbitration Act to hear an appeal challenging a decision sending the dispute into arbitration, the court said Wednesday in an unpublished order. Morgan Stanley’s “attempt to sidestep” the statutory language by styling the decision below an “effective denial” of the right to arbitrate is unpersuasive, the appeals court said.

The lawsuit, ...