'Wholly Groundless' Arbitration Exception Gets Grounded

Law360 (January 9, 2019, 4:15 PM EST) -- On Jan. 8, 2018, the U.S. Supreme Court issued a unanimous decision holding that federal courts must categorically enforce a contractual provision delegating to an arbitral tribunal the question of whether the dispute must be arbitrated.[1] In doing so, the court resolved a deep split among the federal courts of appeals. Reversing the position adopted by the majority of the circuits, the Supreme Court held that when a contract expressly delegates to the arbitral tribunal the question of "arbitrability" — that is, whether an arbitration agreement applies to a particular dispute — courts may not resolve that question themselves, even if the...

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