FINRA Dispute Resolution has released its final monthly report on this past year; we summarize the results here from a yearly perspective, as compared with our usual monthly perspective. The year for FINRA was one of considerable change, with some major rule changes being filed or approved. 2014 was also marked by a major change […]

By Sarah G. Anderson The “extraordinary remedies” authorized by the All Writs Act do not permit a district court to enjoin an arbitration based on whatever claim-preclusive effect may result from the court’s prior judgment when that judgment, merely confirmed the result of the parties’ earlier arbitration. Citigroup, Inc. vs. Abu Dhabi Investment Authority, No. […]

By George H. Friedman* These words were uttered by Supreme Court Justice Louis Brandeis over one hundred years ago in an article titled, What Publicity Can Do.  The thrust of Justice Brandeis’ comment was that transparency leads to good behavior.  And, indeed it does.  When I get to ethics in my law class at Fordham, […]

On the eve of its second meeting, the FINRA Dispute Resolution Task Force received a joint letter from PIABA and several other consumer groups urging it to recommend the release of data about the FINRA arbitration program.  The January 21st letter, which was announced in a Press Release the same day, was signed by Americans […]

By Pete S. Michaels When a contract contains both a broad dispute resolution provision permitting lawsuits and also an arbitration requirement set forth in one narrow context, courts should limit the arbitration requirement to disputes arising squarely in that narrow context. Pictet Funds (Europe) S.A. vs. Emerging Managers Group, L.P., No. 14-cv-6854 (S.D. N.Y., 12/1/14). […]

by George H. Friedman*  [This first appeared in my blog at Arbitration Resolution Services, Inc.] I am a baseball fan from way back.  I’m also an eternal optimist, which explains my being a Mets fan.  See?  That’s me holding the banner on the right, celebrating the Mets 1969 World Series victory on the field at […]

Multi-million dollar awards are rare in securities arbitration, but they occur. In this survey, we take a look at the top 2014 arbitration Awards in SAC’s Award Database. The largest awarded amount of 2014, by far, was assessed in a complicated consolidated Award, Byrne v. Tullett Liberty Brokerage, Inc., FINRA ID #09-04807 (NYC, 7/8/14). Tullett […]

We recently queried our index of court decisions to answer this question: Over the past 15 years, how many post-Award challenges have there been in our field, broken down by year, and how many of those challenges resulted in vacaturs? SAC’s Litigation Alert (SLA) follows court decisions around the country that involve securities/commodities brokerage firms. […]

Claimed reliance upon alleged misrepresentations of suitability may be doubted where “plaintiff was a relatively sophisticated investor and in a position to make additional relevant inquiries prior to purchasing the investments.” Fox vs. LifeMark Securities Corp., No. 12-cv-6650 (W.D. N.Y., 1/8/15). Claims and Defenses Suitability as a violation of the 1933 or 1934 Act is […]

Like a Hollywood movie trailer, imagine a world where the SEC used its Dodd-Frank authority to ban mandatory pre-dispute arbitration agreements (“PDAAs”) in customer-broker contracts. This was the topic discussed recently by an august panel of securities arbitration experts in the inaugural SAC podcast. The video podcast was moderated by former FINRA Director of Arbitration and […]