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ARTICLE · 22 JANUARY 2019

Leave Arbitration To The Arbitrator: No "Wholly Groundless" Exception Where Contract Delegates Arbitrability Determination To The Arbitrator

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The United States Supreme Court continued the pro-arbitration trend in its jurisprudence, as well as its strict construction of the Federal Arbitration Act, in its unanimous decision in Henry Schein, Inc. v. Archer & White Sales, Inc., ...

United StatesLitigation, Mediation & Arbitration

The United States Supreme Court continued the pro-arbitration trend in its jurisprudence, as well as its strict construction of the Federal Arbitration Act, in its unanimous decision in Henry Schein, Inc. v. Archer & White Sales, Inc., No. 17-1272, 2019 WL 122164 (U.S. Jan. 8, 2019). Resolving a division in the Circuits on the issue, the Court held that where the parties delegate the "gateway" issue of arbitrability to the arbitrator, the court may not apply a judicially created "wholly groundless" exception to avoid delegation.1

Case Background

Archer and White Sales, Inc., a small business that distributes dental equipment and the plaintiff below, sued a dental equipment manufacturer and Schein, a major distributor of the equipment, for federal and state law antitrust violations. The relevant agreement between the parties provided that disputes "arising under or relating to" the agreement "shall be resolved by binding arbitration in accordance with the rules of

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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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