Retroactive Application of Rule Changes: Arbitration Agreements May Be Circumvented - Nielsen v. Greenwood

Authors

Douglas M. Worley

Abstract

From early historical jurisprudence, courts have recognized the "timeless and universal human appeal"2 of the presumption against the retroactive application of newly enacted statutes and rules. This principle, as a result, has perpetually been "a solid foundation of American law."3 In Nielsen, however, the court challenged this principle and retroactively applied a National Association of Security Dealer's ("NASD") rule change barring any agreements to arbitrate putative class actions.4 Effectively distinguishing this case from precedent which arrived at a different result, the Nielsen decision remains consistent with relevant precedent and, significantly, does not violate fundamental notions of justice.

Recommended Citation

Douglas M. Worley, Retroactive Application of Rule Changes: Arbitration Agreements May Be Circumvented - Nielsen v. Greenwood, 1996 J. Disp. Resol. (1996)
Available at: https://scholarship.law.missouri.edu/jdr/vol1996/iss1/16