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ARTICLE · 08 FEBRUARY 2019

US Supreme Court Rejects "Wholly Groundless" Exception To Rule That Arbitrators Must Decide Arbitrability When Contract Delegates That Question To Arbitrators

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On January 8, 2019, the US Supreme Court held in Henry Schein, Inc. v. Archer & White Sales, Inc., 586 U.S. --- (Jan. 8, 2019), that when a contract delegates to arbitrators the question whether a dispute is subject to arbitration, ...

United StatesLitigation, Mediation & Arbitration
John Pierce
John Pierce
James Carter
James Carter
Apoorva J. Patel
Apoorva J. Patel
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On January 8, 2019, the US Supreme Court held in Henry Schein, Inc. v. Archer & White Sales, Inc., 586 U.S. --- (Jan. 8, 2019), that when a contract delegates to arbitrators the question whether a dispute is subject to arbitration, a court must refer the matter to arbitration even if, in the court's opinion, the claim that the dispute is arbitrable is "wholly groundless." The unanimous decision, which was the first opinion of the Court authored by Justice Kavanaugh, is available here.

Background

The Schein case involved a dispute between Archer & White, a distributor of dental equipment, and various competitors, including Schein, that distributed and manufactured dental equipment. Archer & White filed suit against Schein and the other defendants in the US District Court for the Eastern District of Texas, alleging violations of federal and state antitrust laws, and seeking both monetary damages and injunctive relief. The relevant contract from which the suit arose

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