Arbitration, in the context of the law of the United States, is a form of alternative dispute resolution. Specifically, arbitration is an alternative to litigation through which the parties to a dispute agree to submit their respective evidence and legal arguments to a third party for resolution. In practice, arbitration is generally used as a substitute for litigation. In some contexts, an arbitrator has been described as an umpire. Arbitration is broadly authorized by the Federal Arbitration Act. State regulation of arbitration is significantly limited by federal legislation and judicial decisions applying that law.
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.
Section 1782 of Title 28 of the United States Code is a federal statute that allows a litigant (party) to a legal proceeding outside the United States to apply to an American court to obtain evidence for use in the non-US proceeding, a process known as discovery. The full name of Section 1782 is "Assistance to foreign and international tribunals and to litigants before such tribunals".
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.
Arbitration in the United States is governed by the Federal Arbitration Act of 1925, which requires courts to compel parties who agree to arbitration to participate in binding arbitration, the decision from which is binding upon the parties. Since the passage of the FAA, both state and federal courts have examined arbitration clauses, as well as other statutes involving arbitration clauses, for validity and enforceability.
DIRECTV, Inc. v. Imburgia, 577 U.S. ___ (2015), was a case in which the Supreme Court of the United States clarified when arbitration provisions in contracts are governed by the Federal Arbitration Act. In a 6–3 opinion written by Justice Stephen Breyer, the Court reversed a decision by the California Court of Appeal that refused to enforce an arbitration agreement between DIRECTV and its customers. The California Court had ruled that the arbitration agreement was unenforceable because, under applicable California law, a class action arbitration waiver between DIRECTV and its customers was unenforceable. However, the Supreme Court of the United States held that the California Court of Appeal's interpretation was preempted by the Federal Arbitration Act, and the California Court of Appeal was therefore required to enforce the arbitration agreement.
Epic Systems Corp. v. Lewis, 584 U.S. ___ (2018), was a case decided by the Supreme Court of the United States on how two federal laws, the National Labor Relations Act (NLRA) and the Federal Arbitration Act (FAA), relate to whether employment contracts can legally bar employees from collective arbitration. The Supreme Court had consolidated three cases, Epic Systems Corp. v Lewis, Ernst & Young LLP v. Morris (16-300), and National Labor Relations Board v. Murphy Oil USA, Inc. (16-307). In a 5–4 decision issued in May 2018, the Court ruled that arbitration agreements requiring individual arbitration and prohibiting class action lawsuits are enforceable under the FAA, regardless of allowances set out within the NLRA.
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.
City of Austin v. Reagan National Advertising of Austin, LLC, 596 U.S. ___ (2022), was a United States Supreme Court case dealing with the application of zoning restrictions on digital billboards in the city of Austin, Texas. In a 6–3 ruling, the Court ruled that the Austin regulation against off-premise digital signs was content-neutral and thus should be reviewed as a facial challenge rather than a strict scrutiny following from the reasoning in Reed v. Town of Gilbert.
Federal Election Commission v. Ted Cruz for Senate, 596 U.S. 289 (2022), was a case related to the First Amendment to the United States Constitution. The Supreme Court of the United States struck down section 304 of the Bipartisan Campaign Reform Act, which limited the amount of money that candidates could be paid on personal loans to their campaign.
Shinn v. Ramirez, 596 U.S. 366 (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.
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."
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.
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.
Coinbase, Inc. v. Bielski, 599 U.S. ___ (2023), was a United States Supreme Court case in which the Court held that a federal district court must stay its proceedings while an interlocutory appeal on the question of arbitrability is ongoing.
Marietta Memorial Hospital Employee Health Benefit Plan v. DaVita Inc., 596 U.S. ___ (2022), was a United States Supreme Court case in which the Court held that the Medicare Secondary Payer statute does not authorize disparate-impact liability, and the Marietta Plan’s coverage terms for outpatient dialysis were lawful because those terms applied uniformly to all covered individuals.
Rent-A-Center, West, Inc. v. Jackson, 561 U.S. 63 (2010), was a United States Supreme Court case in which the Court held that under the Federal Arbitration Act, where an agreement to arbitrate includes an agreement that the arbitrator will determine whether the agreement is enforceable, if a party challenges specifically the enforceability of that particular agreement, the district court considers the challenge. However, if a party challenges the enforceability of the agreement as a whole, the challenge is for the arbitrator.
Cassirer v. Thyssen-Bornemisza Collection Foundation, 596 U.S. ___ (2022), was a United States Supreme Court case in which the Court held that, in a suit raising non-federal claims against a foreign state or instrumentality under the Foreign Sovereign Immunities Act, a court should determine the substantive law by using the same choice-of-law rule applicable in a similar suit against a private party.
George v. McDonough, 596 U.S. ___ (2022), was a United States Supreme Court case in which the Court held that the invalidation of a Department of Veterans Affairs regulation after a veteran's benefits decision becomes final cannot support a claim for collateral relief permitting revision of that decision based on "clear and unmistakable error" under 38 U.S.C. §§ 5109A and 7111.
