United States Third Circuit

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Reading Health System v. Bear Stearns and Co. n/k/a J.P. Morgan Securities LLC, 16-4234

Affirmed that a broker-dealer was required to arbitrate a customer's claim. The broker-dealer had placed a contractual clause in its agreement with an institutional customer stating that the customer must bring any claims arising out of their agreement in a particular federal court. Splitting from several other circuits on the enforceability of such forum-selection clauses, the Third Circuit held that the clause was unenforceable because it would circumvent Financial Industry Regulatory Authority (FINRA) Rule 12200. The panel therefore affirmed an order compelling the broker-dealer to submit to FINRA arbitration.

Appellate Information

  • Argued
  • Submitted
  • Decided
  • Published 2018/08/07

Judges

  • Roth

Court

  • United States Third Circuit

Counsel


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