Originally from Dispute Resolution Journal

SECURITIES-FEDERAL ARBITRATION ACT- ENFORCEMENT OF FORUM SELECTION CLAUSE-AMEX WINDOW- VENUE-SITUS OF SUIT-AMERICAN ARBITRATION ASSOCIATION

The district court erred in not enforcing an arbitration forum-selection clause in a customer agreement that identified the City of New York as the situs of suit.

Robert C. Bennett, a Florida resident, signed a customer agreement with Bear Stearns, a securities brokerdealer. The agreement contained an arbitration clause providing for the arbitration of disputes in accordance with the rules of the National Association of Securities Dealers, the New York Stock Exchange or the American Stock Exchange. The latter contains a provision in its Constitution allowing the customer to elect arbitration "before the American Arbitration Association in the City of New York." Bennett subsequently filed a Demand for Arbitration with the Association in Florida. Bear Stearns, relying on the Constitution's provision, filed a petition in a New York district court to compel arbitration in New York City. The district court granted Bennett's motion to dismiss the petition, finding that the hearing venue was a procedural matter to be determined by the Association, not the court. Bear Stearns appealed.