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 neutral third party for resolution. In practice arbitration is generally used as a substitute for litigation, particularly when the judicial process is perceived as too slow, expensive or biased. In some contexts, an arbitrator may be described as an umpire.
Adair v. United States, 208 U.S. 161 (1908), was a US labor law case of the United States Supreme Court which declared that bans on "yellow-dog" contracts were unconstitutional. The decision reaffirmed the doctrine of freedom of contract which was first recognized by the Court in Allgeyer v. Louisiana (1897). For this reason, Adair is often seen as defining what has come to be known as the Lochner era, a period in American legal history in which the Supreme Court tended to invalidate legislation aimed at regulating business.
The United States Arbitration Act, more commonly referred to as the Federal Arbitration Act or FAA, is an act of Congress that provides for 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.
Fox Film Corp. v. Muller, 296 U.S. 207 (1935), was a case in which the Supreme Court of the United States held that it cannot exert certiorari jurisdiction over a case in which there is an adequate and independent state law ground for the state court's final judgment.
Prima Paint Corp. v. Flood & Conklin Mfg. Co., 388 U.S. 395 (1967), is a United States Supreme Court decision that established what has become known as the "separability principle" in contracts with arbitration clauses. Following an appellate court ruling a decade earlier, it reads the 1925 Federal Arbitration Act (FAA) to require that any challenges to the enforceability of such a contract first be heard by an arbitrator, not a court, unless the claim is that the clause itself is unenforceable.
Southland Corp. v. Keating, 465 U.S. 1 (1984), is a United States Supreme Court decision concerning arbitration. It was originally brought by 7-Eleven franchisees in California state courts, alleging breach of contract by the chain's then parent corporation. Southland pointed to the arbitration clauses in their franchise agreements and said it required disputes to be resolved that way; the franchisees cited state franchising law voiding any clause in an agreement that required franchisees to waive their rights under that law. A 7-2 majority held that the Federal Arbitration Act (FAA) applied to contracts executed under state law.
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.
Circuit City Stores, Inc. v. Adams, 532 U.S. 105 (2001), was a United States Supreme Court case that concerned whether the "section one exemption" of the Federal Arbitration Act applied to an employment contract of an employee at Circuit City Stores. The Court held that the exemption was limited to the specific listing of professions contained in the text. This decision meant that general employment contracts, like the one Adams sued under, would have to be arbitrated in accordance with the federal statute.
Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614 (1985), is a United States Supreme Court decision concerning arbitration of antitrust claims. The Court heard the case on appeal from the United States Court of Appeals for the First Circuit, which had ruled that the arbitration clause in a Puerto Rican car dealer's franchise agreement was broad enough to reach its antitrust claim. By a 5–3 margin it upheld the lower court, requiring that the dealer arbitrate its claim before a panel in Tokyo, as stipulated in the contract.
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.
South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018), was a United States Supreme Court case that held by a 5–4 majority that states may charge tax on purchases made from out-of-state sellers even if the seller does not have a physical presence in the taxing state. The decision overturned Quill Corp. v. North Dakota (1992), which had held that the Dormant Commerce Clause barred states from compelling retailers to collect sales or use taxes in connection with mail order or Internet sales made to their residents unless those retailers have a physical presence in the taxing state.
New Prime Inc. v. Oliveira, 586 U.S. ___ (2019), was a United States Supreme Court case dealing with the classification of employees hired as contractors in relation to exceptions to arbitration set forth in the Federal Arbitration Act (FAA). The Court ruled unanimously that the exceptions set forth in the FAA, principally for those involved in foreign and interstate commerce such as truck drivers, do apply to contractors as they would to regular employees.
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.
Shurtleff v. City of Boston, 596 U.S. ___ (2022), was a United States Supreme Court case related to the First Amendment to the United States Constitution. The case concerned the City of Boston's program that allowed groups to have their flags flown outside Boston City Hall. In a unanimous 9–0 decision, the Court ruled that the city violated a Christian group's free speech rights when it denied their request to raise a Christian flag over City Hall.
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 council, 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 whether and, if so, when 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."
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.
United States v. Washington, 596 U.S. ___ (2022), was a United States Supreme Court case dealing with workers' compensation laws at the federal and state level. The case revolved around compensation for non-federal employees working for nuclear and chemical cleanup on the Hanford Site in Washington State required under state law.
Siegel v. Fitzgerald, 596 U.S. ___ (2022), was a United States Supreme Court case related to the United States bankruptcy courts.
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.
