We have held, second, that all of Badgerow’s claims against the Principals and Ameriprise in the FINRA arbitration arose from the same common nucleus of operative fact, and that under the principle of supplemental jurisdiction, federal jurisdiction obtains over Badgerow’s state-law tortious interference and whistleblower claims. Said the unanimous Opinion: “Applying the look-through analysis, we have held, first, that the district court correctly found that Badgerow’s Title VII declaratory judgment claim against Ameriprise in the FINRA arbitration was a federal-law claim. 2016).Īpplying the “Look Through” Standard HereĪpplying the “look through” test to the underlying FINRA arbitration, the Fifth Circuit held that the District Court had federal subject matter jurisdiction to support removal of the vacatur action filed in State Court. Citigroup Global Markets Inc., 834 F.3d 242 (3d Cir. The Third and the Seventh Circuits have adopted a contrary view, limiting the look-through standard to actions to enforce PDAAs.
2016), where the Second Circuit extended Vaden’s “look through” jurisdictional test to motions to confirm (FAA section 10) or modify (FAA section 11) awards under the FAA. Sea Port Group Securities, LLC , 832 F.3d 372 (2d Cir. Over the years, a majority of Circuits considering the question (First, Second, Fourth, and Fifth) have extended the “look-through” standard to post-award motions to confirm or vacate/modify. Majority of Circuits Extend the Standard to Award Confirmation This was based on FAA section 4 language providing that a motion to compel arbitration can be brought in “any United States district court which, save for such agreement, would have jurisdiction under title 28, in a civil action or in admiralty of the subject matter of a suit arising out of the controversy between the parties.” The Vaden standard became known as the “look through” test.
49 (2009), held that jurisdiction over a FAA section 4 petition to compel arbitration is determined by the nature of the underlying dispute. “Look Through” Standard Under FAA Section 4 Motions to CompelĪlthough the Federal Arbitration Act (“FAA”) does not confer federal subject matter jurisdiction, the Supreme Court in Vaden v. Before the Fifth Circuit was whether the District Court acted properly in determining it had federal subject matter jurisdiction to support removal. Thereafter, the District Court confirmed the Award, finding no fraud in its procurement as Badgerow had alleged. The Respondents then removed the case to federal court.
#Lookthrough issues trial
We borrow from our coverage in #36 to provide background on the case and issues.Ī FINRA Panel rendered an Award denying AP Badgerow’s claims against Ameriprise and three “franchise advisors,” triggering a Petition to vacate by Badgerow in a Louisiana Trial Court. In the underlying case, the Fifth Circuit held that the District Court was correct when it applied the “look through” standard to determine that it could remove a state court action to vacate an Award. As reported in SAA 2021-19 (May 20), the Supreme Court on May 17 granted Certiorari in a case involving application of the “look-through” standard.
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