FAA CASES IN BRIEF

Dispute Resolution Journal, May-Jul 2006

Judge Nicholas Garaufis of the Eastern District of New York ruled that a provision in the New York Alcoholic Beverages Law barring brewers and beer wholesalers from requiring binding arbitration of disputes with beer distributors is preempted by the Federal Arbitration Act. The court cited the federal government's clear interest in promoting a national policy in favor of arbitration." Ryan v. Maison USA, No. OS-Civ-3984.

Justice Bransten of the New York Supreme Court denied a petition to consolidate two securities industry employment arbitrations. The court held that the choice-of-law clauses in the employment agreements were generic and did not clearly establish that the parties intended to displace the Federal Arbitration Act with New York State procedural law, which would have authorized consolidation. Coben v. SAC Capital Advisors LLC., No. 112479/05.