Rodriguez de Quijas v. Shearson/American Express, Inc.
United States Supreme Court
490 U.S. 477, 109 S.Ct. 1917, 104 L.Ed.2d 526 (1989)
Several investors (Rodriguez) (plaintiffs) brought suit against Shearson/American Express, Inc. (defendant) for violations of securities law. Prior to this suit, the parties had entered into an agreement, stating that all disputes would be resolved through arbitration. The district court ruled in favor of Rodriguez, stating that the arbitration clause was invalid under federal securities laws. The court of appeals reversed. Rodriguez then petitioned for certiorari to the United States Supreme Court.
Rule of Law
Holding and Reasoning (Kennedy, J.)
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