Supreme Court Issues Key Ruling on Mandatory Arbitration and Arbitrator Authority

In Rent-A-Center, W., Inc. v. Jackson (June 21, 2010), the U.S. Supreme Court held that when an agreement covered by the Federal Arbitration Act (FAA) delegates the authority to determine the arbitrability of the agreement to the arbitrator, claims that challenge the enforceability and validity of an agreement as a whole will be determined by the arbitrator. Only claims that specifically challenge the enforcement of the delegation provision will be considered by a court.

Background

As a condition of his employment, Antonio Jackson signed an arbitration agreement with Rent-A-Center, West, Inc. ("Rent-A-Center"), which contained a delegation provision expressly providing that the arbitrator would have exclusive authority to resolve any dispute about the enforceability of the arbitration agreement. When Jackson filed an employment discrimination suit against Rent-A-Center, Rent-A-Center filed a motion under the FAA to dismiss or stay the proceedings and to compel