In the Matter of Smith Barney, Harris Upham & Co., Inc., Appellant v. Charlie Luckie, Jr., Respondents, and…

Summary

The New York Court of Appeals reversed the Appellate Division decisions in two securities broker arbitration cases, holding that questions of statutory timeliness are to be decided by New York courts, not arbitrators, because the parties’ agreements expressly chose New York law and this does not conflict with the Federal Arbitration Act. The Court remanded the matters for determination of the applicable statute‑of‑limitations issues. Chief Judge Kaye filed a separate concurring opinion emphasizing the practical burden on out‑of‑state respondents and contrasting the decision with the Court’s recent Salvano ruling.