Ted Eppenstein testified before the U.S. Congress House Judiciary Committee, Subcommittee on Commercial and Administrative Law on October 25, 2007 at hearings on H.R. 3010, the “Arbitration Fairness Act of 2007,” in support of restoring to investors the right to go to court to adjudicate their grievances, and in support of the formation of an independent arbitration forum outside the brokerage industry to settle such disputes.

This is not the first time Ted has supported the rights of investors in Congress. Following the landmark McMahon case in the Supreme Court in which Ted represented public investors, he was asked to testify before two Congressional Subcommittees. In 1988 Ted testified on compulsory arbitration and arbitration reform before the U.S. House of Representatives Subcommittee on Telecommunications and Finance. A reproduction of Ted’s written statement to that Subcommittee can be viewed on the Eppenstein and Eppenstein Web site. Ted assisted the1988 Subcommittee in drafting remedial legislation (H.R. 4960) that would have eliminated mandatory arbitration for customer brokerage disputes. Ted also testified before the U.S. House of Representatives Subcommittee on Criminal Justice in 1987 to present his views on civil RICO reform.

The movement to prohibit mandatory pre-dispute arbitration agreements is gaining traction in both Houses of Congress. The bicameral Arbitration Fairness Act of 2007 was introduced jointly on July 12, 2007 by Representative Hank Johnson (D-GA) and Senator Russ Feingold (D-WI) to amend the Federal Arbitration Act, and would if passed prohibit pre-dispute arbitration agreements involving employment, consumer, franchise or civil rights agreements. In his appearance before the House Subcommittee on October 25, Ted urged Congressman Johnson, who was present, and his colleagues to specifically include investors within the reach of the statute.

Ted’s entire written statement arguing for inclusion of investors as a protected class of consumers under the Act is available on the Subcommittee’s Web site. A reproduction of Ted’s written statement to the Subcommittee (without exhibits) can also be viewed on the Eppenstein and Eppenstein Web site.