Judge Chastises Arbitration Process In Brokerage Dispute

Law360, New York (March 31, 2006, 12:00 AM EST) -- A dispute between two brokerage firms over recruiting practices has turned into a forum for discussion on industry arbitration practices.

In her ruling in a case between Merrill Lynch & Co. and Morgan Stanley, New York Supreme Court Justice Emily Jane Goodman took aim at securities industry arbitration practices, chastising the way in which firms use arbitration panels.

"Your industry and other industries that use arbitration by definition limit access to the courts," Goodman told Merrill's lawyers.

The attack on arbitration practices came as part of...
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