Court Opinion

ID: 9475116
Source: CourtListenerOpinion
Date Created: 2023-08-05 05:17:58.407466+00
Date Added: 2024-06-11T17:44:31.539367
License: Public Domain

ROSS, Circuit Judge,
dissenting.
. I respectfully dissent. I cannot agree with the majority’s holding that predispute arbitration agreements are enforceable with regard to claims arising under section 10(b) of the 1934 Act and Rule 10b-5. I adhere to the position that Wilko v. Swan, 346 U.S. 427, 74 S.Ct. 182, 98 L.Ed. 168 (1953) applies and therefore precludes arbitration of such federal securities claims.
I take this position for three reasons. First, Wilko is still good law, and as the majority points out, eight circuits have extended it to 1934 Act claims. See ante p. 6. Moreover, neither Scherk v. Alberto-Cul-ver Co., 417 U.S. 506, 94 S.Ct. 2449, 41 L.Ed.2d 270 (1974) nor Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213, 105 S.Ct. 1238, 84 L.Ed.2d 158 (1985) hold that Wilko would not apply in the context of a section 10(b) or Rule 10b-5 claim. Second, in my judgment the similarity of the nonwaiver provisions of the 1933 Act and the 1934 Act is of critical importance because I view section 14 of the 1933 Act to be the lynchpin of the Wilko analysis. Third, the policy considerations which underlay Wilko, see 346 U.S. at 435-37, 74 S.Ct. at 186-88, apply to the 1934 Act claims as well.
Because of the absencé of clear precedent in this circuit,11 would give deference to the decisions of the Second Circuit in McMahon v. Shearson/American Express, Inc., 788 F.2d 94, 98 (2d Cir.1986) and the Eleventh Circuit in Miller v. Drexel Burnham, Inc., 791 F.2d 850 (11th Cir.1986) (per curiam) and hold that claims under section 10(b) and Rule 10b-5 are not arbitrable. Accordingly, in the instant case I would affirm the order of the district court denying the motion to compel arbitration of the claims arising under the 1934 Act.

. I do not view Swink & Co. v. Hereth, 784 F.2d 866 (8th Cir.1986) as support for the majority’s position because it is clearly distinguishable. Wilko was inapplicable in Swink because it involved a dispute between municipal bond dealers and associated persons subject to the arbitration proceedings of the Municipal Securities Rulemaking Board. Id. at 868.