Supreme Court: If Clearly Delegated the Task, Arbitrator Decides When Arbitration Agreement is Unconscionable

Originally published June 21, 2010

The Supreme Court handed proponents of arbitration another victory today in Rent-A-Center, West, Inc. v. Jackson, a case involving an unconscionability challenge to an arbitration agreement. The Court held, in a 5-4 opinion authored by Justice Scalia, that the unconscionability challenge was for the arbitrator to decide. The Court's opinion sets the rules for determining, in future cases, the question of who decides such challenges.

At issue in Rent-A-Center was a contention by an employee resisting arbitration of a discrimination claim that the arbitration agreement he signed was unconscionable, and thus invalid. The Court held that, where the parties have clearly agreed to delegate enforceability questions (including unconscionability questions) to the arbitrator, an unconscionability challenge should be decided by the arbitrator—unless the challenge specifically targets the delegation itself as unconscionable. The Court's