The Supreme Court ruled on May 15th that a Kentucky rule of law requiring that a power of attorney specifically authorize agreements to arbitrate was preempted by the Federal Arbitration Act (“FAA”). To review, the Court granted certiorari last October in Kindred Nursing Centers v. Clark & Wellner, No. 16-32, two related preemption cases, each […]

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By James L. Komie Where facts are alleged that include a misrepresentation or omission of material fact in connection with the purchase or sale of a security, SLUSA bars a class action alleging state law claims for breach of contract or breach of fiduciary duty, even where plaintiff does not rely on the misrepresentation or […]

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We keep dipping back into the April 6 program sponsored by the New York State Bar Association, entitled, “Securities Arbitration & Mediation: The Courage to Simplify.” The sessions were rich and provocative, sparking a lot of thought about arbitration’s future. We have summarized parts of the program, including to date the main presentation by FINRA-ODR […]

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By David C. Franceski, Jr. *Absent a substantial question regarding an attorney’s honesty, trustworthiness or fitness, a non-client should not have standing to disqualify an opponent’s counsel. **A former client’s negotiation methods, litigation strategy or “litigation playbook” do not constitute confidential information warranting disqualification. Santander Securities LLC vs. Gamache, No. 17-317 (E.D. Pa., 4/3/17). A […]

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Time certainly does fly. The Trump Administration hit the First Hundred Days milestone on April 30th, which makes now a good time to reflect on activity during this period. We decided to ask resident futurist, Fordham Law prof, and SAC Contributing Legal Editor and Board Member George H. Friedman, to provide this concise summary of […]

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By Christopher G. Lazarini The key to determining whether a party has waived a contractual right to arbitration is prejudice to the non-moving party; factors to consider include: (1) the time elapsed between commencement of litigation and the request for arbitration and (2) the extent to which the moving party has participated in the litigation […]

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In SAA 2017-10, we reported that Congressional Democrats announced March 7 the reintroduction of six bills aimed at curtailing mandatory arbitration in consumer or employment contracts. In the ensuing weeks, there have been changes, so we decided to ask resident futurist, Fordham Law prof, and SAC Contributing Legal Editor and Board Member George H. Friedman […]

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By Ben Suter *A complaint for violation of Rule 10b-5 against an investment advisor by his clients fails to adequately plead the “in connection with” prerequisite, where it does not tie specific misleading statements to particular losing securities transactions, defendants’ corresponding scienter and/or defendants’ alleged motive to purchase securities they knew would decline. **Section 215(b) […]

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By Richard P. Ryder INTRODUCTION For many years now, the FINRA Office of Dispute Resolution has published monthly statistics about its arbitration and mediation operations. The reported data has offered current and historic information about case inflow and outflow, the types of allegations and securities behind customer disputes, the number of cases going to hearing […]

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