‘All-Inclusive’ Forum Selection Clause Supersedes Arbitration Provision, 2nd Cir. Affirms

NEW YORK — A forum selection clause requiring “all actions and proceedings” related to transactions between the parties to a broker-dealer agreement supersedes the agreement’s arbitration clause, the 2nd Circuit U.S. Court of Appeals has affirmed.

In an Aug. 21 opinion, the appellate court explained that the forum selection clause specifically precluded arbitration because it was "all-inclusive" and "mandatory.”

Goldman v. Golden Empire

Golden Empire Schools Financing Authority and Kern High School District (Golden Empire, collectively) issued $125 million of auction rate securities (ARS) in 2004, 2006, and 2007, for which Golden Empire retained Goldman Sachs & Co. as an …