Opinion ID: 74571
Heading Depth: 4
Heading Rank: 3

Heading: Failure of Chosen Forum

Text: Brown also argues that the arbitration clause is void because the specified forum, the National Arbitration Forum (NAF), had dissolved. This argument is without merit. Section 5 of the FAA provides a mechanism for appointment of an arbitrator where “for any [] reason there shall be a lapse in the naming of an arbitrator. . . .” 9 U.S.C. § 5 (West 2000). The unavailability of the NAF does not destroy the arbitration clause. In Luckie v. Smith Barney, Harris Upham & Co., 999 F.2d 509 (11th Cir. 1993) (per curiam), we held that parties to securities transactions could be compelled to 7 arbitrate in front of one of the specifically listed fora. Id. at 514. Accord In re Salomon Inc. Shareholders’ Derivative Litig., 68 F.3d 554, 558-59 (2d Cir. 1995). Where the chosen forum is unavailable, however, or has failed for some reason, § 5 applies and a substitute arbitrator may be named. Astra Footwear Indus. v. Harwyn Int’l, Inc., 442 F. Supp. 907, 910 (S.D.N.Y.), aff’d, 578 F.2d 1366 (2d Cir. 1978). Only if the choice of forum is an integral part of the agreement to arbitrate, rather than an “ancillary logistical concern” will the failure of the chosen forum preclude arbitration. See Zechman v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 742 F. Supp. 1359, 1364 (N.D. Ill. 1990) (citing Nat’l Iranian Oil Co. v. Ashland Oil, 817 F.2d 326 (5th Cir. 1987)). Here there is no evidence that the choice of the NAF as the arbitration forum was an integral part of the agreement to arbitrate. Brown’s argument that the arbitration agreement is void because the NAF was unavailable must fail.