The Second Circuit Court of Appeals has affirmed the dismissal of a challenge to a FINRA arbitration award after concluding that federal courts lacked jurisdiction over the matter.
Versel Green filed an action seeking to vacate a FINRA arbitration award in favor of Bank of America Merrill Lynch and other entities. The district court dismissed his action for lack of jurisdiction. Green appealed. He conceded that no diversity existed but claimed the federal courts had federal question jurisdiction over his claim. The Second Circuit disagreed. It noted that even though Green invoked the Federal Arbitration Act, he still had to present an “independent jurisdictional basis” for his claim that appeared “on the face of the application itself.” The Second Circuit concluded that Green had not done that, explaining that “quarrels about legal settlements — even settlements of federal claims — typically involve only state law, like disagreements about other contracts.”
Green v. Bank of America Merrill Lynch, No. 24-2550 (2d Cir. May 13, 2025).