Although Credit Suisse is held liable for negligent supervision, the Arbitrators nonetheless recommend expungement of the claimant broker’s record (who was “unnamed” in the sense that he was not named as a party in the underlying arbitration). The unanimous Award by an All-Public Panel in Marmaduke v. Credit Suisse Securities (USA) LLC, FINRA ID No. 18-02720…
Passengers who had suffered no injury lacked Article III standing to challenge an arbitration clause in Amtrak’s Terms and Conditions. Amtrak’s passenger Terms and Conditions have since 2019 contained a predispute arbitration agreement applying to: “all claims, disputes, or controversies, past, present, or future, that otherwise would be resolved in a court of law or before a forum other than arbitration.”…
While the arbitration agreement in a variable annuity was enforceable because the investment was a security, once the annuitant converted the product to a fixed annuity it became an insurance product and the PDAA was not enforceable, a unanimous Kentucky Supreme Court holds. The virtually unlimited reach of Federal Arbitration Act (“FAA”) preemption can be…
We entered 2021 with SCOTUS poised to again rule on delegation after hearing oral argument late in 2020.[1] Later in the year, the Court agreed to hear two more arbitration-centric cases. The result for these three cases? Two oral arguments were held, but there was a “never mind” from the Court after one of them.[2] And the…
FINRA intends to codify its program to expedite administration of cases involving senior or seriously ill parties. As promised, we commissioned a survey on the program’s effectiveness, which reveals that the voluntary program has been marginally effective. In SAA 2021-45 (Dec. 2), we reported that FINRA Dispute Resolution Services (“DRS”) was considering a rule change…