Louis Kleist v. Credit Suisse (USA) LLC, et al.

CourtDistrict Court, N.D. California
DecidedMay 29, 2026
Docket3:25-cv-09793
StatusUnknown

This text of Louis Kleist v. Credit Suisse (USA) LLC, et al. (Louis Kleist v. Credit Suisse (USA) LLC, et al.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louis Kleist v. Credit Suisse (USA) LLC, et al., (N.D. Cal. 2026).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 LOUIS KLEIST, Case No. 25-cv-09793-AMO

8 Plaintiff, ORDER RE PLAINTIFF’S MOTION 9 v. FOR PRELIMINARY INJUNCTION AND DEFENDANTS’ MOTION TO 10 CREDIT SUISSE (USA) LLC, et al., COMPEL ARBITRATION 11 Defendants. Re: Dkt. Nos. 15, 23

12 13 Plaintiff Louis Kleist’s motion for preliminary injunction, Dkt. No. 23, and Defendants 14 Credit Suisse (USA) LLC’s and Credit Suisse Securities (USA) LLC’s (together, “Credit Suisse”) 15 motion to compel arbitration, Dkt. No. 15, were heard before this Court on May 28, 2026. Having 16 read the papers filed by the parties and carefully considered their arguments therein and those 17 made at the hearing, as well as the relevant legal authority, the Court DENIES the motion for 18 preliminary injunction and GRANTS the motion to compel arbitration for the following reasons. 19 I. BACKGROUND 20 A. Factual Background 21 Kleist began his employment with Credit Suisse as a Director of International Wealth 22 Management in January 2019, initially based out of the bank’s New York City office. Kleist Decl. 23 (Dkt. No. 20-1) ¶ 2. Credit Suisse required him to execute the Employment Dispute Resolution 24 Program (“EDRP”) agreement as a condition of his employment. See Kleist Decl. ¶ 6; id., Ex. 1. 25 On or about March 8, 2019, Kleist signed what is known in the securities industry as an 26 “Application for Securities Industry Registration or Transfer,” commonly known as a “Form U-4,” 27 an industry-standard registration document. Fox-Lupi Decl. (Dkt. No. 15-3) ¶ 5; id., Ex. A. 1 In June 2020, Kleist relocated to the West Coast, working remotely from Spokane, 2 Washington. Kleist Decl. ¶ 3. In 2021, Credit Suisse formally transferred Kleist’s employment to 3 its San Francisco office. Kleist Decl. ¶ 5. 4 In February 2022, Credit Suisse presented Kleist with an Upfront Cash Award certificate 5 (“UCA”) which set forth certain terms for him to receive a bonus, including a claw back provision. 6 Kleist Decl. ¶ 6; id., Ex. 2. In May 2022, Credit Suisse eliminated his San Francisco position and 7 issued an ultimatum: transfer back across the country to New York City or be terminated. Kleist 8 Decl. ¶¶ 15, 17. Kleist declined the transfer to New York. Kleist Decl. ¶ 18. Credit Suisse 9 characterized the separation as a voluntary resignation and demanded he repay part of his recent 10 cash bonus pursuant to the UCA’s claw back provision. Kleist Decl. ¶ 19. 11 B. Form U-4 12 The Financial Industry Regulatory Authority (“FINRA”) is a self-regulatory organization 13 (“SRO”) with supervisory jurisdiction over participants in the securities industry including 14 (1) “member firms” such as Credit Suisse, and (2) “associated persons” such as Kleist. FINRA’s 15 Rules require member firms and associated persons to resolve all industry-related disputes, subject 16 to exceptions not relevant here, through binding arbitration. Kleist was required by FINRA’s 17 licensing and registration rules to execute, and in fact did execute on March 8, 2019, his Form U-4 18 as part of his registration with FINRA. Fox-Lupi Decl. ¶ 5; id., Ex. A. 19 When Kleist became registered with and licensed by FINRA as an “associated person,” he 20 agreed to submit all claims and disputes against Credit Suisse, as his employer, to FINRA’s 21 exclusive arbitral jurisdiction. Section 15A, subpart 5, at page 12 of the Form U-4 he executed 22 contains an arbitration clause, which provides as follows:

23 I agree to arbitrate any dispute, claim or controversy that may arise between me and my firm or a customer, or any other person, that is 24 required to be arbitrated under the rules, constitutions, or by-laws of the SROs indicated in Section 4 (SRO REGISTRATION) as may be 25 amended from time to time, and that any arbitration award rendered against me may be entered as a judgment in any court of competent 26 jurisdiction. 27 Dkt. No. 15-3 at 15 (emphasis in original). 1 C. Procedural Posture 2 Credit Suisse initiated a FINRA Arbitration action by filing a statement of claim on 3 September 9, 2025. See Berlajolli Decl. (Dkt. No. 15-4) ¶ 5; id., Ex. A. The FINRA Arbitration 4 arises out of Kleist’s refusal to repay Credit Suisse $238,858.57 after his separation from the bank. 5 That figure represents a pro rata amount of the $415,105.42 (less withheld taxes) bonus that was 6 accompanied by the UCA, which Credit Suisse paid Kleist on or about February 28, 2022. Id. 7 The $238,858.57 payback amount is calculated under the UCA’s claw back provision on the 8 disputed premise that Kleist voluntarily resigned from Credit Suisse fewer than three months after 9 he was paid the six-figure bonus – Kleist contends that he did not voluntarily resign because 10 Credit Suisse effectively terminated him when he refused to transfer back to New York. 11 On the same day that Kleist submitted an answer in the FINRA Arbitration, November 13, 12 2025, he filed his Complaint here. See Dkt. No. 1. The Complaint lists the following causes of 13 action: 14 • (1) breach of contract; 15 • (2) unlawful collection of wages; 16 • (3) waiting time penalties; 17 • (4) unfair competition; 18 • (5) declaratory judgment; and 19 • (6) “injunction.” 20 Id. 21 Credit Suisse filed the motion to compel this case to arbitration on February 3, 2026. Dkt. 22 No. 15. 23 Kleist filed a motion for preliminary injunction on April 23, 2026, more than seven months 24 after Defendants initiated the FINRA Arbitration, and five months before the first evidentiary 25 hearings in the Arbitration are scheduled to commence on October 20, 2026. See Dkt. No. 23. 26 Through the motion for preliminary injunction, Kleist seeks to halt the FINRA arbitration 27 proceedings. Dkt. No. 23 at 2. 1 II. DISCUSSION 2 Both the motion to compel arbitration and motion for preliminary injunction were heard 3 together on Thursday, May 28, 2026. At the hearing, the parties both acknowledged that the two 4 motions relate to the same issue – whether the case should proceed in the FINRA arbitration. The 5 Court discusses the motion to compel arbitration first because the legal issues are more squarely 6 addressed in that context. 7 A. Motion to Compel Arbitration 8 Credit Suisse moves to compel Kleist’s claims to arbitration and to stay the case. Dkt. No. 9 19. The Federal Arbitration Act (“FAA”) provides that written arbitration agreements in contracts 10 “evidencing a transaction involving commerce . . . shall be valid, irrevocable, and enforceable, 11 save upon such grounds as exist at law or in equity for the revocation of any contract.” AT&T 12 Mobility LLC v. Concepcion, 563 U.S. 333, 339 (2011) (quoting 9 U.S.C. § 2). The FAA reflects 13 a “liberal federal policy favoring arbitration agreements.” Gilmer v. Interstate/Johnson Lane 14 Corp., 500 U.S. 20, 25 (1991) (quoting Moses H. Cone Memorial Hospital v. Mercury 15 Construction Corp., 460 U.S. 1, 24 (1983)). The FAA “mandates that district courts shall direct 16 the parties to proceed to arbitration on issues as to which an arbitration agreement has been 17 signed.” Dean Witter Reynolds Inc. v. Byrd, 470 U.S. 213, 218 (1985). However, “arbitration is a 18 matter of contract and a party cannot be required to submit to arbitration any dispute which he has 19 not agreed so to submit.” Howsam v. Dean Witter Reynolds, 537 U.S. 79, 83 (2002).

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Louis Kleist v. Credit Suisse (USA) LLC, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/louis-kleist-v-credit-suisse-usa-llc-et-al-cand-2026.