New York Court of Appeals
Alphonse Fletcher, Jr., Appellant v. Kidder, Peabody & Company, Inc., Respondent; Rita Reid, Appellant, v. Goldman…
July 9, 199381 N.Y.2d 623
Summary
The New York Court of Appeals affirmed the Appellate Division orders, holding that arbitration agreements in U‑4 Forms are governed by the Federal Arbitration Act and are enforceable for racial and gender discrimination claims under the State Human Rights Law because Congress has not shown an intent to exempt such statutory claims. The Court overruled its prior decision in Wertheim, applying the Gilmer framework, and rejected the dissent’s reliance on Alexander and state constitutional provisions. Justice Smith’s dissent argues that the majority misapplies Gilmer and improperly discards the public‑policy exception for discrimination claims.