The Importance Of Vaden V. Discover Bank

Law360, New York (May 1, 2009, 12:00 AM EDT) -- The U.S. Supreme Court redefined the enforceability of agreements to arbitrate in its March 9 decision in Vaden v. Discover Bank, et al., 556 U.S. ___ (2009).

While Vaden involved a dispute between a credit card holder and credit card company, the decision may significantly impact the securities industry by making it easier for investors to avoid arbitration, despite the existence of a valid arbitration agreement.

Factual Background

Discover Bank’s servicing affiliate commenced the suit in state court based exclusively on state law in Maryland. The...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.