AAA Must Decide Whether It Or FINRA Should Be The Entity To Administer An Arbitration

A U.S. District Court in Florida has opined that it is up to the American Arbitration Association to decide whether a clearly arbitrable matter should be administered by AAA or FINRA. The arbitration provision at issue stated: “The Parties agree that all controversies, claims, disputes, and matters in question arising out of, or related to [these agreements] . . . shall be decided by binding arbitration before the American Arbitration Association, utilizing [its Commercial Rules or its Securities or Commercial Rules, as applicable]. . . . In the event it is determined that FINRA rules and regulations supersede any agreement to arbitrate before the American Arbitration Association, the Parties hereby specifically instruct the FINRA Director of Arbitration to assign the administration of all claims to the FINRA Boca Raton, Florida office[.]”