Banning Shareholder Suits: Corporate Charter Arbitration Clauses

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3 Responses

  1. nidefatt says:

    Scream. I suppose it’s a symptom of two things: 1. our joy in allowing a free market to decide prices (i.e. arbitrators can charge whatever v. Courts) and 2. A Supreme Court full of non-practitioners who do not, for the life of them, understand the importance of evidentiary rules or anything else our Court system provides. Most countries look at our discovery rules and blanche. This is our Supreme Court backing down.

  2. Chris says:

    I am not sure how this would work for federal securities claims under the 1933 Act or 1934 Act, given the combination of (1) the right to bring suit in court under both the 33 and 34 Act, and (2) antiwaiver provisions in both the 33 and 34 Act.

  3. John D says:

    Fighting issue will be whether the 1933 Act & 1934 Act or the Federal Arbitration Act of 1925 controls.