Madoff Claimants May Arbitrate

Supreme Court Rules Employees Can Seek Arbitration After Payment

Courthouse News
November 7, 2011

An arbitrator may hear claims over millions in losses from funds that invested with Bernie Madoff, even though the proceedings might result in “piecemeal litigation,” the Supreme Court ruled on Monday. At issue were four claims, which had previously been barred from arbitration on the grounds that two of the cases were deemed nonarbitrable.

“State and federal courts must examine with care the complaints seeking to invoke their jurisdiction in order to separate arbitrable from nonarbitrable claims,” the unsigned opinion states. “A court may not issue a blanket refusal to compel arbitration merely on the grounds that some of the claims could be resolved by the court without arbitration.”

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