Federal Court Gives Ammo To NY Arbitration Proponents

Law360 (July 22, 2019, 11:21 AM EDT) -- A federal court's recent ruling that the Federal Arbitration Act trumps New York state's year-old ban on arbitrating sexual harassment claims opens the door for Empire State employers to keep trying to funnel harassment allegations away from courts.

In a decision issued June 26, Southern District of New York Judge Denise Cote granted Morgan Stanley & Co. LLC’s bid to push sexual harassment claims lodged by Mahmoud Latif, finding that a New York law banning the mandatory arbitration of sexual harassment claims was preempted by the Federal Arbitration Act.

The judge noted that her ruling was the first time a court...

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