Cardozo Journal of Conflict Resolution
Abstract
First, Section II summarizes the historical background of the dispute between Goldman Sachs & Co. ("Goldman Sachs") and Golden Empire Schools Financing Authority ("Golden Empire"). Second, Section II identifies the forum selection and merger clauses from the 2004 Broker-Dealer Agreement at issue in Golden Empire. Third, Section II provides a brief background of FINRA and its rules and regulations most pertinent to this dispute, mainly FINRA Rule 12200. Fourth, Section II discusses the emerging circuit split and explains the holdings from each of the circuits. As discussed more fully below, Golden Empire marks a growing circuit split over the availability of mandatory FINRA arbitration in light of such a narrow forum selection clause. It also raises several important issues for future litigation.
Section III explains why a forum selection clause does not supersede a preexisting obligation to arbitrate under FINRA Rule 12200. Section IV describes the flawed arguments in favor of a forum selection clause superseding FINRA's arbitration requirement. Section V presents a proposal and a guideline to effectively resolve the emerging circuit split.
Disciplines
Dispute Resolution and Arbitration | Law | Securities Law
Recommended Citation
Suleman Malik,
Where Do We Fight?: A Way to Resolve the Conflict Between a Forum Selection Clause and FINRA Arbitration Rule 12200,
17
Cardozo J. Conflict Resol.
215
(2015).
Available at:
https://larc.cardozo.yu.edu/cjcr/vol17/iss1/9