All posts by Jill Gross

The Obama Administration’s Plan for Securities Arbitration

From p. 72 of the Treasury Department’s Financial Regulatory Reform blueprint (entitled “A New Foundation: Rebuilding Financial Supervision and Regulation”) released today: The SEC should study the use of mandatory arbitration clauses in investor contracts. Broker-dealers generally require their customers to contract at account opening to arbitrate all disputes. Although arbitration may be a reasonable … Continue reading The Obama Administration’s Plan for Securities Arbitration

Supreme Court grants cert in another FAA-related case

Today, the United States Supreme Court granted a cert petition in Stolt-Nielsen S.A., et al., v. Animalfeeds International Corp., 548 F.3d 85 (2d Cir. 2008).  The Court agreed to decide the question originally presented but ultimately not decided in Green Tree Financial Corp. v. Bazzle, 539 U.S. 444 (2003) — whether imposing class arbitration on parties whose … Continue reading Supreme Court grants cert in another FAA-related case

Obama’s Executive Compensation “Czar” is ADR Savvy

Yesterday, as reported here, President Obama appointed Kenneth Feinberg as the official in charge of determining limits to executive compensation at companies receiving federal bailout money.  Mr. Feinberg is no stranger to making compensation determinations involving large sums of money, as he was in charge of determining payouts to families from the September 11 Victim’s … Continue reading Obama’s Executive Compensation “Czar” is ADR Savvy

Mandatory Arbitration and Fairness

A propos of several recent postings on this blog about the Arbitration Fairness Act, Professor David S. Schwartz (U. Wisconsin) recently posted on SSRN an article entitled “Mandatory Arbitration and Fairness,” forthcoming in the Notre Dame Law Review.  Here is the abstract: Until recently, it was understood that mandatory arbitration was a “do-it-yourself tort reform”: … Continue reading Mandatory Arbitration and Fairness

NASAA Supports Arbitration Fairness Act

Yesterday, the North American Securities Administrators Association (NASAA) announced its full support (see press release here) of the Arbitration Fairness Act of 2009, which amends the Federal Arbitration Act to bar enforcement of pre-dispute arbitration clauses in a consumer, employment, franchise and civil rights dispute.  NASAA, whose membership consists of the securities administrators in the 50 states … Continue reading NASAA Supports Arbitration Fairness Act

Securities Arbitration and the Arbitration Fairness Act

On May 5, I reported on this blog about the Arbitration Fairness Act of 2009, now introduced into both the Senate and the House to amend the Federal Arbitration Act to invalidate pre-dispute arbitration clauses in consumer services, franchise and employment agreements.  As currently drafted, it is unclear whether the proposed Act would cover PDAAs … Continue reading Securities Arbitration and the Arbitration Fairness Act

Supreme Court decides appealability under FAA

Earlier this week, the Supreme Court, in a 6-3 decision, resolved a circuit split involving the Federal Arbitration Act.  In Arthur Andersen LLP v. Carlisle, 2009 WL 1174853 (May 4, 2009), the Court interpreted section 16(a)(1)(A) of the Federal Arbitration Act, which provides a right to interlocutory appeal from “an order … refusing a stay of any action … Continue reading Supreme Court decides appealability under FAA

Arbitration Fairness Act of 2009 – Senate version

Last week, during the April 29 observance of “Arbitration Fairness Day,” Senator Russell Feingold introduced into the Senate the Arbitration Fairness Act of 2009 (s. 931).  Senator Feingold’s website announcement states: The bill would make pre-dispute agreements requiring arbitration for any employment, consumer, franchise, or civil rights disputes unenforceable.  The bill does not prohibit arbitration, but rather prevents … Continue reading Arbitration Fairness Act of 2009 – Senate version

An SEC Commissioner opposes mandatory arbitration

My great friend and former colleague, Barbara Black (Cincinatti), is attending the 15th Institute of Law and Economic Policy (ILEP) conference in Scottsdale, Arizona on “Recoveries for Victims of Securities Fraud.”  While she blogged generally about the conference here, she reported to me privately that Elisse Walter, the keynote speaker and a current Commissioner of … Continue reading An SEC Commissioner opposes mandatory arbitration