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SHEARSON/AMERICAN EXPRESS INC. v. McMAHON

No. 86-44.

482 U.S. 220 (1987)

SHEARSON/AMERICAN EXPRESS INC. ET AL. v. MCMAHON ET AL.

Supreme Court of United States.

Decided June 8, 1987

Attorney(s) appearing for the Case

Theodore A. Krebsbach argued the cause and filed briefs for petitioners.

Richard G. Taranto argued the cause for the United States as amicus curiae urging reversal. With him on the brief were Solicitor General Fried, Deputy Solicitor General Cohen, Daniel L. Goelzer, Paul Gonson, Jacob H. Stillman, and David A. Sirignano.

Theodore G. Eppenstein argued the cause for respondents. With him on the brief was Madelaine Eppenstein.*

Briefs of amici curiae urging affirmance were filed for Willie D. Chandler et al. by Stirling Lathrop and Richard D. Greenfield; and for Bruce Cordray et al. by Denis A. Downey.

JUSTICE O'CONNOR delivered the opinion of the Court.

This case presents two questions regarding the enforceability of predispute arbitration agreements between brokerage firms and their customers. The first is whether a claim brought under § 10(b) of the Securities Exchange Act of 1934 (Exchange Act), 48 Stat. 891, 15 U. S. C. § 78j(b), must be sent to arbitration in accordance with the terms of an arbitration agreement. The second is whether a claim brought...

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