Fifth Circuit

The US Supreme Court Slaps Fifth Circuit Panel of Graves, Higginbotham and Higginsons Decision Not to Arbitrate

The wholly groundless exception to arbitrability is inconsistent with the Federal Arbitration Act and this Court’s precedent. Under the Act, arbitration is a matter of contract, and courts must enforce arbitration contracts according to their terms. 5th circuit reprimanded

Update; Oral Argument on May 1, 2019. A lot of “May Day” Oral Hearings at the 5th Circuit…

The Supreme Court’s newest justice, Brett Kavanaugh, issued his first opinion on Tuesday in a unanimous ruling that could help companies keeps disputes in third-party arbitration.

The justices held that courts must enforce contracts that force parties to settle disputes privately through third-party arbitration according to their terms under the Federal Arbitration Act, even if one party claims that the argument for arbitration is “wholly groundless.”

The justices agreed this “wholly groundless” exemption to the arbitrability of a dispute is inconsistent with the law.

HIGGINSON, STEPHEN A.

HIGGINGBOTHAM, PATRICK E.

GRAVES, JAMES E. (JR)

“We must interpret the Act as written, and the Act in turn requires that we interpret the contract as written,” Kavanaugh said from the bench while giving a summary of the court’s ruling.

“When the parties’ contract delegates the arbitrability circumstances, a court possesses no power to decide the arbitrability issue.”

The dispute stems from a lawsuit Archer & White Sales Inc., a medical equipment distributor, brought against a business competitor, Henry Schein Inc., alleging Schein violated federal and state antitrust laws.

Schein asked the district court to refer the matter to arbitration under a contractual agreement between the two parties, but Archer & White said the dispute was not subject to arbitration.

Schein argued that arbitrators, not the courts, should decide whether the arbitration agreement applies under the rules governing the contract.

In a 9-0 ruling, the justices agreed.

“When the parties’ contract delegates the arbitrability question to an arbitrator, the courts must respect the parties’ decision as embodied in the contract,” Kavanaugh, President Trump‘s second appointee to the court, said from the bench.

The case was remanded for further proceedings in the 5th Circuit Court of Appeals consistent with the court’s ruling.

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Laws In Texas is a blog about the Financial Crisis and how the banks and government are colluding against the citizens and homeowners of the State of Texas and relying on a system of #FakeDocs and post-crisis legal precedents, specially created by the Court of Appeals for the Fifth Circuit to foreclose on homeowners around this great State. We are not lawyers. We do not offer legal advice. We are citizens of the State of Texas who have spent a decade in the court system in Texas and have been party to during this period to the good, the bad and the very ugly.

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