What Disputes are Eligible for Arbitration?

In considering whether to initiate arbitration, it is important to keep in mind that, generally, a customer has a right to require a broker/dealer to submit for arbitration only disputes relating to or arising out of the business activities of the broker/dealer.

 

When deciding where to file your claim, you should determine which SRO has jurisdiction over the broker/dealer.

 

Under the Uniform Code a controversy is not eligible for submission to arbitration if six or more years have elapsed from the date of the event giving rise to the dispute. The arbitrators also may dismiss a claim barred by shorter applicable state or federal statutes of limitations. If there is a question about the statute of limitations, you should consult an attorney.

 

Even after a customer has signed the agreement to arbitrate, the customer may request either the sponsoring organization or the arbitrators to permit that customer to proceed with his or her claim in court. The customer should be aware, however, that in most cases the sponsoring organization and the arbitrators will retain jurisdiction and proceed with the arbitration.

 

The Uniform Code states that a claim submitted as a class action shall not be eligible for arbitration. The rule also sets forth the circumstances where a claim encompassed by a putative or certified class action may or may not be eligible to be filed in arbitration. For further guidance you should refer to the rule and discuss its application to a particular case with the staff of the SRO where you intend to file your claim.