Central Bank of Washington v. Hume was a case heard by the Supreme Court of the United States in 1995. The case involved a dispute between Central Bank of Washington and Hume, a former employee of the bank. Hume had been fired from the bank and subsequently sued the bank for wrongful termination. The bank argued that Hume was not entitled to any damages because he had signed an arbitration agreement when he was hired. The Supreme Court ruled in favor of the bank, holding that the arbitration agreement was valid and enforceable. The Court also held that the bank was not required to provide Hume with a jury trial, as the arbitration agreement specifically stated that any disputes would be resolved through arbitration. The Court also held that the bank was not required to provide Hume with a hearing before the arbitration panel, as the agreement did not require it. This case established that arbitration agreements are valid and enforceable, and that employers are not required to provide employees with a jury trial or a hearing before an arbitration panel.

In the Supreme Court case of Central Bank of Washington v. Hume, Justice Scalia wrote a dissenting opinion in which he argued that the majority’s interpretation of Section 10(b) and Rule 10b-5 was incorrect. He argued that Congress did not intend for private parties to be able to bring claims under these provisions, as they are meant to protect investors from fraud by prohibiting certain types of deceptive practices in securities transactions. Furthermore, he noted that allowing such suits would open up companies to an endless stream of litigation and could potentially lead to “absurd results” if courts were allowed too much discretion when interpreting what constitutes a violation. Ultimately, Justice Scalia concluded that while it is important for individuals who have been wronged by fraudulent activity in securities transactions should have recourse through the legal system, this should be done through other means than those provided by Section 10(b) and Rule 10b-5 because they were never intended for such use.