Can Federal Courts Enjoin Arbitration at FINRA?

, New York Law Journal


Matthew W. Woodruff writes: As if following Voltaire, a number of federal judges have now opined that if the power to enjoin arbitration does not exist under the FAA, it is up to the courts to invent one. As explained below, however, except in exceptional circumstances—such as where a court must issue an injunction to protect an existing order or judgment—a federal court does not have a general power to enjoin arbitration.

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