Consumers, employees, and businesses commonly sign agreements
that contain provisions that require disputes to be resolved by
arbitration, rather than in the courts. Nevertheless, it is not
uncommon for parties to these agreements to file suit in court,
despite the arbitration provisions. But just because a dispute
begins in court, does not mean it has to stay there.
In recent years, the United States Supreme Court has handed down
a number of decisions that have addressed the issue of
parties’ filing lawsuits despite the applicability of
enforceable arbitration agreements. These cases have interpreted
the Federal Arbitration Act (“FAA”) and protected
businesses’ and employers’ ability to require that
disputes with employees and consumers be submitted to arbitration.
The latest such decision was Lamps Plus Inc. v. Varela,
which the Court decided last month.
