While we are waiting for the February 2017 FINRA-ODR statistics to be posted on the Authority’s Website, we turn again to the Hearing Location table chart. Providing statistics on the availability of arbitrators and the caseload by hearing location stands as the most prominent enhancement to FINRA’s monthly statistical report. As we have reported, FINRA […]

As we predicted in SAA 2017-11, mandatory arbitration was a focus of inquiry at Supreme Court nominee Neil Gorsuch’s Senate Judiciary Committee confirmation hearings that took place starting March 20th. We correctly predicted in SAA 2017-11 that mandatory arbitration would come up at the hearings. Our clue, as we reported in SAA 2017-10, was a […]

By James L. Komie *Where an arbitration panel awards damages but fails to specify which of two respondents is responsible for paying the damages or how the award is to be divided among co-claimants, the Award may be vacated and the case may be remanded to the arbitrators for the limited purpose of clarifying the […]

FINRA has posted a detailed account on the forum’s Website explaining how it goes about selecting arbitrators for inclusion on the ranking lists that are distributed to parties at the close of pleadings. Most people understand that FINRA selects arbitrators “randomly” from its Neutral Roster of 7,000 arbitrators, but “random” doesn’t explain it all. After […]

By Paul J. Dubow *A claim for interference with contract can only be alleged against a third party who is a stranger to the contract. **A claim of interference with contract will not lie if the contract was breached prior to the alleged interference. ***A claim for fraud that lumps two sets of defendants together […]

Undaunted by the rather poor prospects of enactment, Congressional Democrats announced March 7 the reintroduction of six bills aimed at curtailing mandatory arbitration in consumer or employment contracts. Resident futurist, Fordham Law prof, and SAC Contributing Legal Editor and Board Member George H. Friedman blogged in January and last December on this very topic, correctly […]

By Christopher G. Lazarini *A commodity futures contract is not a “security” under Ohio law. **A commodity pool operator may be exempt from registration if the pool has less than 15 participants and the total gross capital contributions received by the operator for units in the pool do not exceed $400,000. Stevens vs. S.W.L.H.S. Investment […]

Last week, we identified and began surveying the 2016 Award records of the five broker-dealers (BDs) with the largest number of Awards that year, with special attention on Customer-Member Awards, and compared the results to those of the similar survey we did for 2015 with respect to the same BDs’ Awards. This week, we finish […]

By Sarah G. Anderson A lock-up agreement between underwriters of an initial public offering and pre-IPO shareholders, without more, does not covert the parties to the agreement into a “group” that, if the beneficial owners of 10% or more of the issuer’s stock, are subject to the short-swing disgorgement requirement of §16(b) of the Securities […]