California Supreme Court to Review Case on FAA Preemption of State’s arbitration Statute
Securities Arbitration Alert Blog
by secadmin
4d ago
By George H. Friedman, SAA Publisher & Editor-in-Chief The California Supreme Court has agreed to review a case on FAA preemption of California Code of Civil Procedure sections 1281.97 and 1281.98. We covered in SAA 2024-11 (Mar. 14) Hohenshelt v. Superior Court, No. B327524 (Calif. Ct. App. 2 Feb. 27, 2024), not for the holding, but for the scathing dissent. Justice John Shepard Wiley Jr.’s dissent in Hohenshelt offered an excellent primer on SCOTUS decisions on Federal Arbitration Act preemption of California law disadvantaging arbitration. We borrow heavily from our past coverage. We re ..read more
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Customers’ Failure to Comply with Discovery Orders Results in Dismissal and Sanctions
Securities Arbitration Alert Blog
by Securities Arbitration Alert
2w ago
By George H. Friedman, SAA Publisher & Editor-in-Chief An All-Public Panel dismisses with prejudice a group of customers’ claims against Respondent broker-dealer and imposes monetary sanctions in the form of attorney fees pursuant to FINRA Rules 12212(c) and 12511 for their intentional disregard and failure to comply with the Panel’s Orders regarding the production of discovery in this matter. Claims In the Statement of Claim in Hayes v. Aegis Capital Corp., FINRA ID No. 22-02854 (Cleveland, OH, May 24, 2024), Claimants asserted the following causes of action: “suitability, churning, fail ..read more
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CFPB Issues Warning on Deceptive Contract Terms, Including Arbitration
Securities Arbitration Alert Blog
by Securities Arbitration Alert
3w ago
By George H. Friedman, SAA Publisher & Editor-in-Chief The Consumer Financial Protection Bureau (“CFPB”) on June 4 issued a circular warning on the use of deceptive terms in contracts for consumer financial products or services, with arbitration featured as a prime example. Says the notice: “Many federal laws—including statutes enforced by the CFPB—render unlawful or unenforceable various contract terms in certain contexts. For example … Regulation Z, which implements the Truth-in-Lending Act (TILA), prohibits the inclusion in a residential mortgage loan or open-ended consumer credit plan ..read more
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SCOTUS Holds that CFPB Funding Method is Constitutional
Securities Arbitration Alert Blog
by Securities Arbitration Alert
1M ago
By George H. Friedman, SAA Publisher & Editor-in-Chief The Supreme Court holds 7-2 that the CPPB’s funding mechanism does not violate the Constitution’s Appropriations Clause. We reported in SAA 2023-10 (Mar. 9) that the Supreme Court had granted Certiorari in Community Financial Services Ass’n of America v. CFPB, No. 21-50826 (5th Cir. Oct. 19, 2022), where a unanimous Fifth Circuit held that, although the Consumer Financial Protection Bureau (“CFPB”) did not exceed its authority in promulgating the Payday Lending Rule, its funding method is unconstitutional. As reported in SAA 2022-40 (O ..read more
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A Possible Sea Change for Non-Compete Agreements
Securities Arbitration Alert Blog
by Securities Arbitration Alert
1M ago
By David E. Robbins, Esq.[i] In April 2024, the Federal Trade Commission (“FTC”) issued its Final Rule prohibiting existing and prospective non-compete clauses in agreements between employers and their workers.[1] Before it became effective, the new regulation was challenged in court proceedings and at the time this new article was submitted to my publisher, there had been no nationwide injunction against its implementation.[2]  It should be noted at the outset that the regulation does not affect non-solicitation and confidentiality provisions. This article examines the breadth of the new ..read more
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SCOTUS Decides Suski. Dueling Delegation and Forum Selection Clause Disputes Are Decided by Courts
Securities Arbitration Alert Blog
by Securities Arbitration Alert
1M ago
By George H. Friedman, SAA Publisher & Editor-in-Chief In the third unanimous decision of the term SCOTUS holds in Coinbase v. Suski, No. 23-3, that under the Federal Arbitration Act (“FAA”), courts, not arbitrators, decide whether a delegation agreement or conflicting forum selection clause applies. As previously reported the Court heard oral argument February 20. The audio is here and the transcript can be found here. Certiorari Petition Recall that we reported in SAA 2023-25 (Jun. 29) and blogged in June 2023 that the Supreme Court had decided Coinbase, Inc. v. Bielski, No. 22-105, ruli ..read more
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SCOTUS Decides Spizzirri. Under FAA Section Three, Stay Means Stay
Securities Arbitration Alert Blog
by Securities Arbitration Alert
1M ago
By George H. Friedman, SAA Publisher & Editor-in-Chief A unanimous Court holds in Smith v. Spizzirri, No. 22-1218, that under Federal Arbitration Act (“FAA”) section three, courts compelling arbitration must stay but cannot dismiss the underlying litigation. As reported in SAA 2024-18 (May 9), the Court heard oral argument April 22. The audio is here and the transcript can be found here. Certiorari Petition As reported in SAA 2023-36 (Sep. 21), the June 2023 Petition for Certiorari states: “This case presents a clear and intractable conflict regarding an important statutory question under ..read more
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New DOL Fiduciary Rule is Final
Securities Arbitration Alert Blog
by Securities Arbitration Alert
2M ago
By George H. Friedman, SAA Publisher & Editor-in-Chief The Department of Labor’s (“DOL”) final fiduciary rule has been published; it goes into effect September 23. We borrow heavily from our previous reporting. As reported in SAA 2023-42 (Nov. 8), the DOL’s Employee Benefits Security Administration proposed last fall: “a new rule that would protect workers’ retirement savings by updating the regulation defining a fiduciary under the Employee Retirement Income Security Act (ERISA).” As described on the DOL’s dedicated Webpage: “The ‘Retirement Security Rule: Definition of an Investment Adv ..read more
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SCOTUS Hears Oral Argument in Spizzirri
Securities Arbitration Alert Blog
by Securities Arbitration Alert
2M ago
By George H. Friedman, SAA Publisher & Editor-in-Chief The Supreme Court heard oral argument April 22 in Smith v. Spizzirri, No. 22-1218. The audio is here and the transcript can be found here. Certiorari Petition As reported in SAA 2023-36 (Sep. 21), the June 2023 Petition for Certiorari states: “This case presents a clear and intractable conflict regarding an important statutory question under the Federal Arbitration Act (FAA), 9 U.S.C. 1-16.[] The FAA establishes procedures for enforcing arbitration agreements in federal court. Under Section 3 of the Act, when a court finds a dispute s ..read more
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SCOTUS Decides Bissonnette. FAA Section One Exemption Does Not Require Worker be in the Transportation Industry
Securities Arbitration Alert Blog
by secadmin
3M ago
By George H. Friedman, SAA Publisher & Editor-in-Chief A unanimous Court holds in Bissonnette v. LePage Bakeries Park St. LLC, No. 23-51, that the Federal Arbitration Act (“FAA”) section one exemption does not require that the worker be engaged in the transportation industry. As reported in SAA 2024-05 (Feb. 15), the Supreme Court on February 20 heard the oral argument in Bissonnette. The audio is here and the transcript can be found here. Certiorari Petition The July 2023 Petition states: “The Federal Arbitration Act exempts the ‘contracts of employment of seamen, railroad employees, or ..read more
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