Eligibility and Statutes of Limitations in Arbitration

New York City Bar Program Materials for “Securities Arbitration & Mediation Hot Topics 2018

St. John's Legal Studies Research Paper No. 18-0012

12 Pages Posted: 22 May 2018

See all articles by Christine Lazaro

Christine Lazaro

St. John's University - School of Law

Michael Edmiston

Jonathan W. Evans & Associates; PIABA Board of Directors

Date Written: May 15, 2018

Abstract

Cases that are heard before FINRA arbitration panels must be “eligible” for arbitration. FINRA’s eligibility rule, Rule 12206(a), states “[n]o claim shall be eligible for submission to arbitration under the Code where six years have elapsed from the occurrence or event giving rise to the claim.” “Occurrence or event” is not defined within the Code, and accordingly, there is much dispute over what “occurrence or event” starts the clock on the six years. This article discusses FINRA guidance and case law interpreting “occurrence or event.”

Additionally, statutes of limitations may bar claims. Few states have addressed explicitly whether statutes of limitations apply to arbitrations as well as court actions. In many states, the applicability is determined by the phrasing within the statute. Statutes that use the term “actions” are generally interpreted to exclude arbitrations, while those that include the term “proceedings” are deemed to apply to arbitrations. The article examines the case law discussing the differences.

Suggested Citation

Lazaro, Christine and Edmiston, Michael, Eligibility and Statutes of Limitations in Arbitration (May 15, 2018). New York City Bar Program Materials for “Securities Arbitration & Mediation Hot Topics 2018, St. John's Legal Studies Research Paper No. 18-0012, Available at SSRN: https://ssrn.com/abstract=3183369

Christine Lazaro (Contact Author)

St. John's University - School of Law ( email )

8000 Utopia Parkway
Jamaica, NY 11439
United States

Michael Edmiston

Jonathan W. Evans & Associates ( email )

12711 Ventura Blvd
Ste 440
Studio City, CA 91604
United States
(818) 760-9880 (Phone)

PIABA Board of Directors

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