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Article Index » human resources » arbitration of claims » Arbitrability
Report Link Courts, Not Arbitrators, to Decide Issue of Unconscionability in First Instance, Ninth Circuit Rules.
Jackson Lewis LLP - September 21, 2009
Reversing an order compelling arbitration, the U.S. Court of Appeals for the Ninth Circuit held that, where a party specifically challenges an arbitration agreement as unconscionable, the court, not the arbitrator, must decide the issue of unconscionability in the first instance, even if the arbitration agreement provides otherwise. Jackson v. Rent-A-Center West, Inc., No. 07-16164 (9th Cir. Sept. 9, 2009). The Court also found that the agreement’s fee-sharing provision was not unconscionable. However, because the district court failed to address whether other provisions in the agreement also were unconscionable, the Court remanded the matter for further proceedings. The Ninth Circuit, which has jurisdiction over Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon and Washington.
Report Link Supreme Court Rules that Arbitrable Counterclaim is No Key to Door of Federal Courthouse.
Jackson Lewis LLP - March 17, 2009
The U.S. Supreme Court has held that in determining whether to order arbitration, federal courts should “look through” a petition to compel arbitration to determine whether it is predicated on a controversy that “arises under” federal law in accordance with the so-called well-pleaded complaint rule. This rule requires federal courts to examine the allegations and claims in the complaint to determine whether jurisdiction exists; jurisdiction cannot be predicated on defenses or counterclaims alone, even if they are subject to an agreement to arbitrate. Thus, a federal court may not entertain a petition to compel arbitration based on the contents of a counterclaim if the underlying substantive controversy otherwise does not qualify for federal court adjudication.
Report Link Supreme Court Holds that FAA Overrides Conflicting State Law Jurisdictional Provision.
Ford & Harrison LLP - February 25, 2008
Citing the national policy favoring arbitration established in the Federal Arbitration Act (FAA) and Southland Corp. v. Keating, the U.S. Supreme Court has ruled that the contractual agreement to arbitrate disputes preempts contrary state law frameworks. Writing for the Court in Preston v. Ferrer, decided on February 20, 2008, Justice Ginsberg held that the FAA overrides state laws that would lodge primary jurisdiction in another forum beside arbitration, regardless of whether that forum is judicial or administrative.

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