On January 8, 2019, the Supreme Court of the United States
decided whether courts may disregard contractual language calling
for an arbitrator to decide questions of arbitrability if the
argument that the arbitration agreement applies to the particular
dispute is "wholly groundless." The Court ruled that a
"wholly groundless" exception is inconsistent with the
Federal Arbitration Act (FAA), and courts are not free to override
the terms of parties' agreements to arbitrate. Henry Schein, Inc. v. Archer and White Sales,
Inc., Supreme Court of the United States, No. 17-1272
(January 8, 2019).
Background
The case involves a business dispute between a distributor of
dental equipment, Archer and White Sales, Inc., and the
successor-in-interest to a dental equipment manufacturer, Henry
Schein, Inc. The contract between the parties provided that any
dispute arising under or relating to the contract, but not
including actions seeking injunctive relief, "shall be
resolved by
