dean
witter
reynolds
byrd
argued
december
decided
march
respondent
invested
securities
petitioner
parties
written
agreement
arbitrate
disputes
might
arise
account
thereafter
value
account
declined
respondent
filed
action
petitioner
federal
district
alleging
violations
securities
exchange
act
various
provisions
petitioner
filed
motion
compel
arbitration
pendent
state
claims
parties
agreement
stay
arbitration
pending
resolution
federal
action
petitioner
argued
federal
arbitration
act
provides
arbitration
agreements
shall
valid
irrevocable
enforceable
save
upon
grounds
exist
law
equity
revocation
contract
required
district
compel
arbitration
state
claims
district
denied
motion
appeals
affirmed
held
district
erred
refusing
grant
petitioner
motion
compel
arbitration
state
claims
pp
arbitration
act
requires
district
courts
compel
arbitration
pendent
arbitrable
claims
one
parties
files
motion
compel
even
result
possibly
inefficient
maintenance
separate
proceedings
different
forums
terms
act
leaves
room
exercise
discretion
district
instead
mandates
district
courts
shall
direct
parties
proceed
arbitration
issues
arbitration
agreement
signed
act
legislative
history
establishes
principal
purpose
ensure
judicial
enforcement
privately
made
arbitration
agreements
promote
expeditious
resolution
claims
compelling
arbitration
claims
district
successfully
protects
parties
contractual
rights
rights
arbitration
act
pp
neither
stay
arbitration
proceedings
joined
proceedings
necessary
protect
federal
interest
proceeding
formulation
rules
affords
adequate
protection
interest
pp
marshall
delivered
opinion
unanimous
white
filed
concurring
opinion
post
eugene
bell
argued
cause
petitioner
briefs
kevin
fitzgerald
eric
benham
argued
cause
filed
brief
respondent
joseph
riemer
iii
william
fitzpatrick
filed
brief
securities
industry
association
et
al
amici
curiae
urging
reversal
justice
marshall
delivered
opinion
question
presented
whether
complaint
raises
federal
securities
claims
pendent
state
claims
federal
district
may
deny
motion
compel
arbitration
claims
despite
parties
agreement
arbitrate
disputes
granted
certiorari
resolve
conflict
among
federal
courts
appeals
question
lamar
byrd
sold
dental
practice
invested
securities
dean
witter
reynolds
securities
value
account
declined
september
march
byrd
filed
complaint
dean
witter
district
southern
district
california
alleging
violation
securities
exchange
act
various
provisions
federal
jurisdiction
claims
based
diversity
citizenship
principle
pendent
jurisdiction
complaint
byrd
alleged
agent
dean
witter
traded
account
without
prior
consent
number
transactions
executed
behalf
account
excessive
misrepresentations
made
agent
dean
witter
status
account
agent
acted
dean
witter
knowledge
participation
ratification
byrd
invested
funds
dean
witter
signed
customer
agreement
providing
ny
controversy
undersigned
arising
relating
contract
breach
thereof
shall
settled
arbitration
app
pet
cert
dean
witter
accordingly
filed
motion
order
severing
pendent
state
claims
compelling
arbitration
staying
arbitration
claims
pending
resolution
action
app
argued
federal
arbitration
act
arbitration
act
act
provides
arbitration
agreements
shall
valid
irrevocable
enforceable
save
upon
grounds
exist
law
equity
revocation
contract
required
district
compel
arbitration
claims
act
authorizes
parties
arbitration
agreement
petition
federal
district
order
compelling
arbitration
issue
referable
arbitration
agreement
dean
witter
assumed
federal
securities
claim
subject
arbitration
provision
contract
resolved
federal
forum
seek
compel
arbitration
claim
district
denied
entirety
motion
sever
compel
arbitration
pendent
state
claims
interlocutory
appeal
appeals
ninth
circuit
affirmed
ii
confronted
issue
address
whether
compel
arbitration
pendent
claims
federal
event
assert
jurisdiction
claim
federal
courts
appeals
adopted
two
different
approaches
along
ninth
circuit
case
fifth
eleventh
circuits
relied
doctrine
intertwining
arbitrable
nonarbitrable
claims
arise
transaction
sufficiently
intertwined
factually
legally
district
view
may
discretion
deny
arbitration
arbitrable
claims
try
claims
together
federal
courts
acknowledge
strong
federal
policy
favor
enforcing
arbitration
agreements
offer
two
reasons
district
courts
nevertheless
decline
compel
arbitration
situation
first
assert
result
necessary
preserve
consider
exclusive
jurisdiction
federal
securities
claim
otherwise
suggest
arbitration
intertwined
state
claim
might
precede
federal
proceeding
factfinding
done
arbitrator
might
thereby
bind
federal
collateral
estoppel
second
reason
cite
efficiency
declining
compel
arbitration
avoids
bifurcated
proceedings
perhaps
redundant
efforts
litigate
factual
questions
twice
contrast
sixth
seventh
eighth
circuits
held
arbitration
act
divests
district
courts
discretion
regarding
arbitration
cases
containing
arbitrable
nonarbitrable
claims
instead
requires
courts
compel
arbitration
arbitrable
claims
asked
courts
conclude
act
plain
meaning
strong
federal
policy
reflects
requires
courts
enforce
bargain
parties
arbitrate
substitute
views
economy
efficiency
congress
dickinson
heinold
securities
agree
latter
courts
arbitration
act
requires
district
courts
compel
arbitration
pendent
arbitrable
claims
one
parties
files
motion
compel
even
result
possibly
inefficient
maintenance
separate
proceedings
different
forums
accordingly
reverse
decision
compel
arbitration
iii
arbitration
act
provides
written
agreements
arbitrate
controversies
arising
existing
contract
shall
valid
irrevocable
enforceable
save
upon
grounds
exist
law
equity
revocation
contract
terms
act
leaves
place
exercise
discretion
district
instead
mandates
district
courts
shall
direct
parties
proceed
arbitration
issues
arbitration
agreement
signed
thus
insofar
language
act
guides
disposition
case
conclude
agreements
arbitrate
must
enforced
absent
ground
revocation
contractual
agreement
suggested
however
act
expressly
address
whether
mandate
enforce
arbitration
agreements
holds
true
course
result
bifurcated
proceedings
arbitration
agreement
enforced
act
drafters
explicitly
consider
prospect
bifurcated
proceedings
told
clear
language
act
might
misleading
thus
courts
adopted
view
ninth
circuit
case
argued
act
goal
speedy
efficient
decisionmaking
thwarted
bifurcated
proceedings
given
absence
clear
direction
point
intent
congress
passing
act
controls
compels
refusal
compel
arbitration
point
addition
past
occasion
identified
contrary
federal
interest
sufficiently
compelling
outweigh
mandate
arbitration
act
see
supra
conclude
interest
speedy
resolution
claims
case
see
miley
oppenheimer
cunningham
dean
witter
reynolds
supp
ed
cal
turn
consider
whether
legislative
history
act
provides
guidance
issue
congressional
history
expressly
direct
resolution
scenario
address
conclude
however
consideration
congress
intent
passing
statute
must
compel
arbitration
otherwise
arbitrable
claims
motion
compel
arbitration
made
legislative
history
act
establishes
purpose
behind
passage
ensure
judicial
enforcement
privately
made
agreements
arbitrate
therefore
reject
suggestion
overriding
goal
arbitration
act
promote
expeditious
resolution
claims
act
mandate
arbitration
claims
merely
enforcement
upon
motion
one
parties
privately
negotiated
arbitration
agreements
house
report
accompanying
act
makes
clear
purpose
place
arbitration
agreement
upon
footing
contracts
belongs
overrule
judiciary
longstanding
refusal
enforce
agreements
arbitrate
say
congress
blind
potential
benefit
legislation
expedited
resolution
disputes
far
house
report
expressly
observed
practically
appropriate
action
taken
time
much
agitation
costliness
delays
litigation
matters
largely
eliminated
agreements
arbitration
arbitration
agreements
made
valid
enforceable
therefore
persuaded
argument
conflict
two
goals
arbitration
act
enforcement
private
agreements
encouragement
efficient
speedy
dispute
resolution
must
resolved
favor
latter
order
realize
intent
drafters
preeminent
concern
congress
passing
act
enforce
private
agreements
parties
entered
concern
requires
rigorously
enforce
agreements
arbitrate
even
result
piecemeal
litigation
least
absent
countervailing
policy
manifested
another
federal
statute
see
supra
compelling
arbitration
claims
district
successfully
protects
contractual
rights
parties
rights
arbitration
act
iv
also
suggested
however
courts
appeals
held
district
courts
decide
arbitrable
pendent
claims
nonarbitrable
federal
claim
otherwise
findings
arbitration
proceeding
might
effect
subsequent
federal
proceeding
preclusive
effect
believed
pose
threat
federal
interest
resolution
securities
claims
warrant
refusal
compel
arbitration
courts
held
claims
separately
resolved
preclusive
effect
warrants
stay
arbitration
proceedings
pending
resolution
federal
securities
claim
case
dean
witter
also
asked
district
stay
arbitration
proceedings
pending
resolution
federal
claim
suspect
response
holdings
believe
preclusive
effect
arbitration
proceedings
significantly
less
well
settled
lower
opinions
might
suggest
consequence
misconception
formulation
unnecessarily
contorted
procedures
conclude
neither
stay
proceedings
joined
proceedings
necessary
protect
federal
interest
proceeding
formulation
rules
affords
adequate
protection
interest
initially
far
certain
arbitration
proceedings
preclusive
effect
litigation
nonarbitrable
federal
claims
last
term
held
neither
provision
judicially
fashioned
rule
preclusion
permits
federal
accord
res
judicata
effect
unappealed
arbitration
award
case
brought
mcdonald
west
branch
statute
requires
federal
courts
give
preclusive
effect
state
judicial
proceedings
courts
state
rendering
judgment
since
arbitration
judicial
proceeding
held
statute
apply
arbitration
awards
analysis
inevitably
apply
unappealed
state
arbitration
proceedings
also
declined
mcdonald
fashion
federal
rule
preclusion
part
ground
arbitration
provide
adequate
substitute
judicial
proceeding
protecting
federal
statutory
constitutional
rights
designed
safeguard
therefore
recognized
arbitration
proceedings
necessarily
preclusive
effect
subsequent
proceedings
significantly
mcdonald
also
establishes
courts
may
directly
effectively
protect
federal
interests
determining
preclusive
effect
given
arbitration
proceeding
since
preclusion
doctrine
comfortably
plays
role
follows
neither
stay
arbitration
proceedings
refusal
compel
arbitration
state
claims
required
order
assure
precedent
arbitration
impede
subsequent
action
courts
appeals
assumed
effect
must
given
arbitration
proceedings
therefore
sought
accomplish
indirectly
erroneously
assumed
directly
question
preclusive
effect
arbitration
proceedings
might
yet
us
however
decide
effect
arbitration
proceeding
issue
arbitration
completed
course
therefore
need
consider
whether
analysis
mcdonald
encompasses
case
suffice
say
framing
preclusion
rules
context
courts
shall
take
account
federal
interests
warranting
protection
result
reason
require
district
courts
decline
compel
arbitration
manipulate
ordering
resulting
bifurcated
proceedings
simply
avoid
infringement
federal
interests
finding
unpersuasive
arguments
advanced
support
ruling
hold
district
erred
refusing
grant
motion
dean
witter
compel
arbitration
pendent
state
claims
accordingly
reverse
decision
appeals
insofar
upheld
district
denial
motion
compel
arbitration
remand
proceedings
consistent
opinion
ordered
footnotes
dean
witter
amici
representing
securities
industry
urge
us
resolve
applicability
wilko
claims
rule
decline
district
dean
witter
seek
compel
arbitration
federal
securities
claims
thus
question
whether
wilko
applies
rule
claims
properly
us
respondent
byrd
also
argues
contract
adhesion
arbitration
agreement
subject
close
judicial
scrutiny
routinely
enforced
byrd
present
argument
courts
decline
address
first
instance
therefore
express
view
merits
argument
see
belke
merrill
lynch
pierce
fenner
smith
miley
oppenheimer
see
also
cunningham
dean
witter
reynolds
supp
ed
cal
see
also
surman
merrill
lynch
pierce
fenner
smith
liskey
oppenheimer
bifurcated
proceedings
might
result
several
kinds
cases
involving
securities
transactions
example
since
decision
wilko
swan
see
supra
claims
arising
securities
act
may
resolved
arbitration
confronted
claim
pendent
state
claims
motion
compel
arbitration
bifurcated
proceedings
might
result
wilko
applies
claims
arising
provisions
securities
acts
situation
arise
also
federal
securities
claim
pendent
claims
filed
party
arbitration
agreement
asks
district
compel
arbitration
pendent
state
claims
prospect
bifurcated
proceeding
arises
finally
federal
courts
addressed
issue
confronted
federal
antitrust
actions
pendent
state
claims
see
lee
ply
gem
industries
app
holding
arbitrable
claims
become
subject
adjudication
merely
related
nonarbitrable
claims
dispute
arises
contract
containing
agreement
arbitrate
cert
denied
according
report
need
law
arises
anachronism
american
law
centuries
ago
jealousy
english
courts
jurisdiction
refused
enforce
specific
agreements
arbitrate
upon
ground
courts
thereby
ousted
jurisdiction
jealousy
survived
long
period
principle
became
firmly
embedded
english
common
law
adopted
american
courts
courts
felt
precedent
strongly
fixed
overturned
without
legislative
enactment
although
frequently
criticised
rule
recognized
illogical
nature
injustice
results
bill
declares
simply
agreements
arbitration
shall
enforced
provides
procedure
federal
courts
enforcement
see
also
cong
rec
creates
new
legislation
grants
new
rights
except
remedy
enforce
agreement
commercial
contracts
admiralty
contracts
see
belke
merrill
lynch
pierce
fenner
smith
miley
oppenheimer
cunningham
dean
witter
reynolds
see
surman
merrill
lynch
pierce
fenner
smith
dickinson
heinold
securities
see
also
liskey
oppenheimer
discussing
dickinson
justice
white
concurring
join
opinion
write
separately
add
words
regarding
two
issues
leaves
undeveloped
premise
controversy
us
respondent
claims
securities
exchange
act
arbitrable
notwithstanding
contrary
agreement
parties
opinion
rightly
concludes
question
whether
us
ante
nonetheless
note
matter
substantial
doubt
wilko
swan
held
arbitration
agreements
unenforceable
regard
claims
act
relied
three
interconnected
statutory
provisions
act
voids
stipulation
binding
person
acquiring
security
waive
compliance
provision
act
noted
creates
special
right
recover
misrepresentation
differs
substantially
action
allows
suit
state
federal
competent
jurisdiction
provides
nationwide
service
process
wilko
reasoning
mechanically
transplanted
act
act
equivalent
act
counterparts
two
provisions
imperfect
absent
altogether
jurisdiction
act
narrower
restricted
federal
courts
important
cause
action
rule
involved
implied
rather
express
see
herman
maclean
huddleston
nn
phrase
waive
compliance
provision
chapter
emphasis
added
thus
literally
inapplicable
moreover
wilko
solicitude
federal
cause
action
special
right
established
congress
necessarily
appropriate
cause
action
judicially
implied
different
action
expressed
reservations
scherk
reiterate
emphasize
question
remains
open
contrary
holdings
lower
courts
must
viewed
doubt
opinion
makes
clear
district
stay
arbitration
refuse
compel
fear
preclusive
effect
perceive
possible
reasons
staying
arbitration
pending
outcome
lawsuit
belated
enforcement
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clause
though
less
substantial
interference
refusal
enforce
nonetheless
significantly
disappoints
expectations
parties
frustrates
clear
purpose
agreement
addition
decided
two
proceedings
go
forward
independently
concern
speedy
resolution
suggests
neither
delayed
impossibility
lawyers
two
places
may
require
accommodation
scheduling
seems
heavy
presumption
arbitration
lawsuit
proceed
normal
course
matter
remains
determined
district
see
nothing
record
us
indicate
arbitration
present
case
stayed
act
explicitly
provide
private
right
action
victims
certain
illegal
conduct
see
none
sections
relied
respondent