Adjunct Professor George Friedman wrote an article in Securities Arbitration Commentator commemorating the 30th anniversary of the U.S. Supreme Court decision in Shearson/American Express Inc. v. McMahon (concerning the arbitration of private securities fraud claims arising from the Securities Exchange Act of 1934.)
Hard to believe, but June 8th marked the 30th anniversary of SCOTUS deciding Shearson/American Express v. McMahon, 1 where a somewhat divided Supreme Court decided, in a case dealing with a securities brokerage pre-dispute arbitration agreement, to set a course that has elevated alternative dispute resolution to a position of prominence and visibility (and controversy) affecting interstate commerce generally and, most particularly, the employment and retail consumer sectors. This article offers look-backs at this ground-breaking decision, delving into the issues, the cast of characters, the decision, and the views of securities arbitration luminaries on the lasting impact of the case.
