The Adjudication of International
The international business community has access to U.S. courts
and alternative dispute resolution mechanisms for the adjudication
of commercial disputes. Likewise, aggrieved international
investors who do business with United States securities,
commodity futures and other financial services firms, through
branch offices based both outside of and within the U.S., normally
have a right to pursue their remedies in a U.S. - based arbitral
institution or other alternative dispute resolution process.
The New York City Venue to Resolve Investment
International customers who bring their claims under the auspices
of the major self-regulatory organizations ("SROs")
that run arbitration programs, such as the New York Stock Exchange
("NYSE"), the National Association of Securities Dealers
Dispute Resolution, Inc. ("NASD-DR") and the National
Futures Association ("NFA"), usually elect to have
their disputes adjudicated in a U.S. based venue, and New York
City has always been a magnet for a large proportion of these
cases. As a result, Eppenstein and Eppenstein's Manhattan attorneys
have frequently been called upon to represent international investors
who want to take advantage of a U.S. based venue to adjudicate
their securities and commodities
fraud claims and other investment related disputes.
Remedies Available to International Investors
Arbitration of securities and commodities disputes is usually
required pursuant to financial services customer contracts, and
claims arising under the U.S. securities laws are almost always
subject to compulsory arbitration.
Under the commodities laws there may be additional options, including
court litigation and reparations. In any case, the international
investor may seek the protection of both statutory and common
law remedies in the U.S. to seek redress for stock
broker abuses. These investors will likely face a number
of fairly typical procedural and tactical issues asserted by
the brokerage industry, such as statutes of limitations, eligibility
rules at the SROs and preemptive affirmative defenses and counterclaims.
But ultimately the international investor has the opportunity
to obtain a favorable recovery in a U.S. venued proceeding.