Oral argument took place February 22nd before the Supreme Court in Kindred Nursing Centers v. Clark, No. 16-32. To review, the Court granted certiorari last October in related preemption cases involving an arbitration agreement in a nursing home admission agreement signed by an attorney-in-fact (SAC Ref. No. 2016-41-03). The issue as framed in the Petition […]

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By David C. Franceski, Jr. *Absent a demonstration of actual injury, or imminent and impending harm, a challenge to an ongoing arbitration fails for lack of ripeness under Article III of the U.S. Constitution. **Under the doctrine of arbitral immunity, both arbitrators and the arbitration forum, itself, are immune from suit. Habliston vs. FINRA Regulation, […]

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By George H. Friedman* SAC Board Member and Contributing Legal Editor A year ago, I published in the NY State Bar Association’s Resolution Roundtable blog, “The Presidents and Arbitration: from Washington to Obama – and Beyond.” I of course had to hedge on the “beyond” part. No longer. The historical parts below of course remain […]

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Financial Services Committee Chairman Hensarling has issued a memo alerting committee leadership of changes to an earlier version of the Act to repeal and replace Dodd-Frank. We cover here the arbitration-related changes. Candidate Trump was very clear that acting on repealing and replacing Dodd-Frank was on his First Hundred Days list. Although some suggestions to […]

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By William D. Nelson A remand order instructing the district court to rely on the existing record does not preclude the district court’s reliance on better information if such information becomes available on remand. Thompson vs. United Securities Alliance, Inc., No. 15CA0964 (Colo. App., 9/8/16). A Garnishment Catlin issued a liability insurance policy to defendant, […]

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Two other arbitration-related cases involving Supreme Court nominee Gorsuch have surfaced, which to us indicate that, while he may be a stickler for precise use of language, he is still pro-arbitration. We covered in SAA 2017-05 Supreme Court nominee Neil M. Gorsuch’s views on arbitration based on past decisions. We stated that, based on a […]

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By Burton W. Wiand The arbitration provision of a second agreement between two parties cannot be applied to an earlier, separate agreement between the same parties unless they expressly agree to arbitrate both agreements. American Airlines Federal Credit Union vs. Fonseca & Morgan Stanley Smith Barney, LLC, No. 3D16-208 (Fla. App., 3Dist., 10/19/16). This decision […]

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President Trump has nominated Judge Neil M. Gorsuch of the Tenth Circuit to fill the open seat at the Supreme Court. We’ll leave to others reporting on the broad issues; we focus here on the nominee’s views on arbitration based on past decisions. So far, we’ve found a few cases – none involving securities arbitration […]

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By Sarah G. Anderson A securities investor cannot assert a cause of action for fraud or negligent misrepresentation, based on the failure to disclose certain information, if he continued to purchase the security after learning the information. UBS Financial Services, Inc. vs. Zimmerman, No. 5:16-CV-155 (E.D. N.C., 12/1/16). UBS filed this action to enjoin an […]

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As a new year begins, we like to take the opportunity to review some of the most notable securities arbitration Award statistics of the last year. First up: the largest awards of damages. The single largest one in 2016 issued in Speer v. Morgan Stanley Smith Barney LLC, FINRA ID #13-00549 (Tampa, FL, 3/21/16), a […]

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