The U.S. Court of Appeals for the Third Circuit has ruled that JPMorgan & Co. can’t use a forum selection clause to avoid its obligation as a member of the Financial Industry Regulatory Authority to arbitrate all claims brought against it by a client.

The appeals court, affirming a ruling from the U.S. District Court for the Eastern District of Pennsylvania, said a forum selection clause in broker-dealer agreements issued by Bear Stearns, now JPMorgan Securities, is insufficient to waive Reading Health System’s right to arbitration under FINRA’s Rule 12200.