Matthew H. Adler Quoted in Legal Newsline Article, 'Legality of CFPB's Plan for Proposed Ban on Arbitration Clauses in Question'
Matthew H. Adler, chair of Pepper Hamilton's International and Domestic Arbitration Practice Group and a co-chair of the firm's Commercial Litigation Practice Group, was quoted in the December 4, 2015 Legal Newsline article, "Legality of CFPB's Plan for Proposed Ban on Arbitration Clauses in Question."
Matt Adler, a lecturer at the University of Virginia School of Law and partner at Pepper Hamilton LLP in Philadelphia, also questions the legality of the bureau's planned proposal.
"If you take social policy out of it – can this agency do this? And I'm not at all sure," said Adler, who is the co-chair of the firm's commercial litigation practice and leads the practice's group
on international and domestic arbitration.
"I think there's definitely going to be a fight."
As Adler explains, the CFPB is very similar to the Environmental Protection Agency, in that it was created by Congress to make rules and regulations.
But those rules can be challenged in court, Adler noted.
"The mere proclamation of a rule by an agency doesn't mean it's not going to be challenged or upheld by a court," he said. "The courts frequently shoot down agency actions."
He continued, "I think the big question here is, can the delegation to the board in Dodd-Frank overcome the strong pro-arbitration decisions of the Supreme Court of the last five years? I don't think anyone knows. It's
a very cool collision course."
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