Badgerow v. Walters | |
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Argued November 2, 2021 Decided March 31, 2022 | |
Full case name | Denise A. Badgerow v. Greg Walters, et al. |
Docket no. | 20-1143 |
Citations | 596 U.S. ___ ( more ) |
Argument | Oral argument |
Holding | |
The “look-through” approach to determining federal jurisdiction, whereby a federal court assesses whether there is a jurisdictional basis to decide a Federal Arbitration Act Section 4 petition to compel arbitration by means of examining the parties’ underlying dispute, does not apply to requests to confirm or vacate arbitral awards under Sections 9 and 10 of the Federal Arbitration Act. | |
Court membership | |
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Case opinions | |
Majority | Kagan, joined by Roberts, Thomas, Alito, Sotomayor, Gorsuch, Kavanaugh, Barrett |
Dissent | Breyer |
Laws applied | |
Federal Arbitration Act |
Badgerow v. Walters, 596 U.S. ___ (2022), was a United States Supreme Court case concerning when, if ever, federal courts have subject matter jurisdiction to confirm or vacate arbitration awards under the Federal Arbitration Act (FAA). The Court held that the "look through" approach established by the Court's decision in Vaden v. Discover Bank "does not apply to requests to confirm or vacate arbitral awards under Sections 9 and 10 of the FAA." [1]
Denise Badgerow was an employee of REJ Properties, Inc., a Louisiana financial services provider. As part of her employment, Badgerow signed an agreement to arbitrate any disputes between her and her employer. In 2016, Badgerow was fired from her position. Following her termination, Badgerow sued the principals of REJ Properties, alleging that she had been discriminated against due to her gender and that she had been fired in retaliation for reporting this discrimination as well as other violations of U.S. securities law. Badgerow filed suit before the Equal Employment Opportunity Commission and in the United States District Court for the Eastern District of Louisiana. Additionally, Badgerow initiated arbitration proceedings against the principal employees of REJ Properties. [2] [3]
Badgerow subsequently lost the arbitration and her cases in district court and the EEOC were both dismissed. Following her loss in the arbitration, Badgerow filed a new case in Louisiana state court, asking the state court to vacate the arbitration award entered against her. The principals of REJ Properties subsequently removed that case to federal court, arguing that the federal court held jurisdiction to decide the case under Sections 9 and 11 of the Federal Arbitration Act. [2] [3]
Both the district court and the United States Court of Appeals for the Fifth Circuit agreed that they held jurisdiction to review the claim and that removal was proper. Likewise, both courts held that Badgerow had not shown that the arbitration award should be vacated. Badgerow subsequently appealed these decisions to the Supreme Court, which granted certiorari on May 17, 2021. Oral argument took place on November 2, 2021. [2] [3]
Following oral argument, Holly Barker at BloombergLaw surmised the lower court rulings in favor of jurisdiction were likely to be affirmed. [4] By contrast, Ronald Mann writing for SCOTUSBlog suggested that "it is far from obvious" how the justices will rule in this case. [5]
The United States Arbitration Act, more commonly referred to as the Federal Arbitration Act or FAA, is an act of Congress that provides for non-judicial facilitation of private dispute resolution through arbitration. It applies in both state courts and federal courts, as was held in Southland Corp. v. Keating. It applies in all contracts, excluding contracts of seamen, railroad employees, or any other class of workers involved in foreign or interstate commerce, and it is predicated on an exercise of the Commerce Clause powers granted to Congress in the U.S. Constitution.
Marshall v. Marshall, 547 U.S. 293 (2006), is a case in which the United States Supreme Court held that a federal district court had equal or concurrent jurisdiction with state probate (will) courts over tort claims under state common law. The case drew an unusual amount of interest because the petitioner was Playboy Playmate and celebrity Anna Nicole Smith. Smith won the case, but unsolved issues regarding her inheritance eventually led to another Supreme Court case, Stern v. Marshall. She died before that case was decided.
Arbitration is a form of alternative dispute resolution (ADR) that resolves disputes outside the judiciary courts. The dispute will be decided by one or more persons, which renders the 'arbitration award'. An arbitration decision or award is legally binding on both sides and enforceable in the courts, unless all parties stipulate that the arbitration process and decision are non-binding.
Preston v. Ferrer, 552 U.S. 346 (2008), was a United States Supreme Court case in which the Court held, 8–1, that the Federal Arbitration Act (FAA) overrules state laws declaring that certain disputes must be resolved by a state administrative agency.
Hall Street Associates, L.L.C. v. Mattel, Inc., 552 U.S. 576 (2008), was a United States Supreme Court case that held that state and federal courts cannot, on a motion to vacate or to modify an arbitration award, expand the limited scope of judicial review specified in 9 U.S.C. §§ 10 and 11, including terms that were agreed upon by the parties.
Moses H. Cone Memorial Hospital v. Mercury Construction Corp., 460 U.S. 1 (1983), commonly cited as Moses Cone or Cone Hospital, is a United States Supreme Court decision concerning civil procedure, specifically the abstention doctrine, as it applies to enforcing an arbitration clause in a diversity case. By a 6–3 margin, the justices resolved a complicated construction dispute by ruling that a North Carolina hospital had to arbitrate a claim against the Alabama-based company it had hired to build a new wing, even though it meant that it could not consolidate it with ongoing litigation it had brought in state court against the contractor and architect.
Wilko v. Swan, 346 U.S. 427 (1953), is a United States Supreme Court decision on the arbitration of securities fraud claims. It had originally been brought by an investor who claimed his broker at Hayden Stone had sold stock to him without disclosing that he and the firm were the primary sellers. By a 7–2 margin the Court held that the provisions of the Securities Act of 1933 barring any waiver of rights under that statute took precedence over the Federal Arbitration Act's (FAA) requirement that arbitration clauses in contracts be given full effect by federal courts. It reversed a decision to the contrary by a divided panel of the Second Circuit Court of Appeals.
Foster v. Chatman, 578 U.S. ___ (2016), was a United States Supreme Court case in which the Court held that the state law doctrine of res judicata does not preclude a Batson challenge against peremptory challenges if new evidence has emerged. The Court held the state courts' Batson analysis was subject to federal jurisdiction because "[w]hen application of a state law bar 'depends on a federal constitutional ruling, the state-law prong of the court’s holding is not independent of federal law, and our jurisdiction is not precluded,'" under Ake v. Oklahoma.
Frank v. Gaos, 586 U.S. ___ (2019), was a per curiam decision by the Supreme Court of the United States in a case concerning the practice of cy pres settlements in class action lawsuits. Following oral argument, the court asked the parties to submit supplemental briefs addressing whether the parties had Article III standing to pursue the case in federal courts. Supplemental briefing was completed on December 21, 2018. On March 20, 2019, the court remanded the case to the Ninth Circuit to address the plaintiffs’ standing in light of Spokeo, Inc. v. Robins.
Henry Schein, Inc. v. Archer & White Sales, Inc., 586 U.S. ___ (2019), was a case decided by the Supreme Court of the United States on January 8, 2019. The case decided the question of whether a court may disregard a valid delegation of arbitrability—a contract provision stating that an arbitrator should decide whether a dispute is subject to arbitration—when the argument in favor of arbitration is "wholly groundless." In a unanimous (9-0) opinion written by Justice Brett Kavanaugh, the court sided with petitioner Henry Schein, Inc., holding that the "wholly groundless" exception to arbitrability violates the Federal Arbitration Act, and therefore a valid delegation of arbitrability should be honored even if a court believes the argument for arbitration to be "wholly groundless." It was Justice Kavanaugh's first Supreme Court opinion.
Shinn v. Ramirez, 596 U.S. ___ (2022), was a case decided by the United States Supreme Court related to the Antiterrorism and Effective Death Penalty Act of 1996. The court held that new evidence that was not in the state court's records, based on ineffective assistance of post-conviction counsel, could not be used in an appeal to a federal court.
Southwest Airlines Co. v. Saxon, 596 U.S. ___ (2022), was a United States Supreme Court case related to the scope of the Federal Arbitration Act, in which the Court unanimously held that cargo loaders and ramp supervisors employed at airports are exempt from the Federal Arbitration Act.
Viking River Cruises, Inc. v. Moriana, 596 U.S. ___ (2022), was a United States Supreme Court case related to the scope of the Federal Arbitration Act.
Oklahoma v. Castro-Huerta, 597 U.S. ___ (2022), was a United States Supreme Court case related to McGirt v. Oklahoma, decided in 2020. In McGirt, the Supreme Court ruled that the U.S. Congress never properly disestablished the Indian reservations of the Five Civilized Tribes in Oklahoma when granting its statehood, and thus almost half the state was still considered to be Native American land. As a result of McGirt, crimes under the Major Crimes Act by Native Americans in the former reservations are treated as federal crimes rather than state crimes.
Allen v. Milligan, 599 U. S. ___ (2023), is a United States Supreme Court case related to redistricting under the Voting Rights Act of 1965 (VRA). The appellees and respondants argued that Alabama's congressional districts discriminated against African-American voters. The Court ruled 5–4 that Alabama’s districts likely violated the VRA, maintained an injunction that required Alabama to create an additional majority-minority district, and held that Section 2 of the VRA is constitutional in the redistricting context.
Patel v. Garland, 596 U.S. ___ (2022), was a United States Supreme Court case related to the jurisdiction of federal courts over immigration appeals.
Golan v. Saada, 596 U.S. ___ (2022), was a United States Supreme Court case concerning the Hague Convention on the Civil Aspects of International Child Abduction. The case reviewed if all ameliorative measures must be taken into consideration before denying a Hague Convention petition once it is found that the child could face harm when returned to a foreign country.
Boechler v. Commissioner, 596 U.S. ___ (2022), was a United States Supreme Court case related to Title 26 of the United States Code and equitable tolling. It is regarding the statutory interpretation of 26 U.S.C. § 6330(c) and whether the tax court would have jurisdiction over petitions to the tax court if the petition exceeded the 30 days time frame.
United States v. Texas, 599 U.S. ___ (2023), was a United States Supreme Court case related to federal immigration law.
ZF Automotive U. S., Inc. v. Luxshare, Ltd., 596 U.S. ___ (2022), is a decision of the United States Supreme Court on the scope of §1782 of Title 28 of the United States Code. The issue of statutory interpretation for the Court was whether a private commercial arbitral tribunal constitutes a "foreign or international tribunal" under 28 U.S.C. § 1782(a) and therefore empowers federal districts courts to compel the production by persons subject to their jurisdiction of documents and testimony for such tribunals.