04.04.22

Supreme Court Ruling Could Add Uncertainty in FINRA Arbitration

by: Mark Schoeff, Jr.

Last week's Supreme Court ruling could create more uncertainty about arbitration awards from the Financial Industry Regulatory Authority. The high court ruled that federal arbitration laws allowing federal courts to "look through" a dispute's underlying issues are inapplicable to petitions by arbitration participants to confirm or vacate arbitration awards. This makes it more likely that arbitration winners and losers will go to state courts to obtain victories or rescind defeats, and such courts tend to view arbitration with skepticism. "I don't think it changes much because most people are going to state court to either confirm or vacate an arbitration award under a state's arbitration act," said Jonathan Evans & Associates attorney Michael Edmiston.

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