Wilko v. Swan

346 U.S. 427, 74 S. Ct. 182, 98 L. Ed. 168 (1953)

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Wilko v. Swan

United States Supreme Court
346 U.S. 427, 74 S. Ct. 182, 98 L. Ed. 168 (1953)

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Facts

A customer (plaintiff) bought stock from a brokerage firm (defendant). The customer later sued pursuant to the Securities Act of 1933, alleging that the brokerage firm had fraudulently induced him to buy the stock. The brokerage firm moved to stay the trial, arguing that because the customer had agreed to arbitrate, he had waived his right to sue. The district court denied the stay, and the court of appeals reversed.

Rule of Law

Issue

Holding and Reasoning (Reed, J.)

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