High Court Reverses Andersen Arbitration Ruling

Law360, New York (May 4, 2009, 12:00 AM EDT) -- The U.S. Supreme Court ruled Monday that a litigant who is not party to an arbitration agreement can appeal a federal court decision refusing to stay the litigation pending arbitration, reversing an earlier appeals court ruling and remanding the case brought by defunct accounting firm Arthur Andersen LLP for a further review.

A 6-3 majority also restated earlier Supreme Court decisions that litigants not party to an arbitration agreement can invoke Section 3 of the Federal Arbitration Act to seek and obtain a stay pending arbitration,...
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