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OLDE DISCOUNT CORP. v. TUPMAN

No. 92-7557.

1 F.3d 202 (1993)

OLDE DISCOUNT CORPORATION v. W. Michael TUPMAN, and as Deputy Attorney General of the State of Delaware; Richard W. Hubbard, Securities Commissioner of the State of Delaware; Eugene H. Engelhardt and Carol D. Engelhardt, W. Michael Tupman, individually and as Deputy Attorney General of the State of Delaware; Richard W. Hubbard, Securities Commissioner of the State of Delaware; Eugene H. Engelhardt, Carol D. Engelhardt, Appellants.

United States Court of Appeals, Third Circuit.

Decided July 30, 1993.

As Amended August 5, 1993.

Sur Petition for Rehearing August 26, 1993.

Attorney(s) appearing for the Case

Richard E. Fairbanks, Jr. (argued), Chief of Appeals Div., Loren C. Meyers, Deputy Atty. Gen., DE Dept. of Justice, Wilmington, DE, for appellants.

James S. Green, Duane, Morris & Heckscher, Wilmington, DE, Robert P. Bramnik (argued), Thomas P. Fitzgerald, Michael I. Behn, Altheimer & Gray, Chicago, IL, for appellee.

Joseph C. Long, 300 Timberdell Road, Norman, OK, for amici curiae North American Securities Administrators Ass'n, Inc. and Nat. Consumers League.

Before: GREENBERG, NYGAARD and ROSENN, Circuit Judges.

OPINION

GREENBERG, Circuit Judge.

This case presents a novel question of the relationship between a contracting party's right to enforcement of an arbitration agreement under the Federal Arbitration Act, 9 U.S.C. §§ 1-16 (FAA), and a state's interest in pursuing a remedy of rescission in an administrative proceeding. The district court enjoined the Delaware securities commissioner from seeking rescission on behalf of two investors who had entered...

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