Loyola University Chicago Law Journal Volume 19 Article 2 Issue 1 Fall 1987 1987 The McMahon Mandate: Compulsory Arbitration of Securities and RICO Claims Stephen P. Bedell Partner, Gardner, Carton & Douglas, Chicago, IL Lolla M. Harrison Assoc., Gardner, Carton & Douglas, Chicago, IL Stuart C. Harvey Jr. Assoc., Gardner, Carton & Douglas, Chicago, IL Follow this and additional works at: http://lawecommons.luc.edu/luclj Part of the Criminal Law Commons, and the Securities Law Commons Recommended Citation Stephen P. Bedell, , Lolla M. Harrison, & Stuart C. HarveyJr., The McMahon Mandate: Compulsory Arbitration of Securities and RICO Claims, 19 Loy. U. Chi. L. J. 1 (1987). Available at: http://lawecommons.luc.edu/luclj/vol19/iss1/2 This Article is brought to you for free and open access by LAW eCommons. It has been accepted for inclusion in Loyola University Chicago Law Journal by an authorized administrator of LAW eCommons. For more information, please contact
[email protected]. The McMahon Mandate: Compulsory Arbitration of Securities and RICO Claims Stephen P. Bedell* Lolla M. Harrison** Stuart C Harvey, Jr. *** I. INTRODUCTION As a matter of standard practice, arbitration clauses are included in commercial contracts, particularly those between brokerage firms and their customers. These arbitration clauses are typically very broad and provide for arbitration of all disputes that arise out of the contractual relationship of the parties. As such, broker- dealer arbitration clauses have given rise to a seminal issue: whether federal courts must enforce agreements to arbitrate sec- tion 10(b) and Rule lOb-5 claims arising out of the Securities Ex- change Act of 1934' (the "1934 Act") and claims arising out of the Racketeer Influenced and Corrupt Organizations Act 2 ("RICO").