Just How Broad Is That Arbitration Clause In Your Transportation Contract?

Christopher Nolan is a Partner and Clayton J Vignocchi is an Associate at our New York office.

For this post, we wanted to highlight a case that has implications across industries. Transportation, perhaps as much as any other industry, relies heavily on arbitration clauses in agreements with counterparties and employees alike. In the maritime arena, arbitrations were recognized by U.S. Congress to be a vital part of the industry's decision-making process when "maritime transactions" were defined the first section of the Federal Arbitration Act (FAA).¹ In Oliveira v. New Prime, Inc., 857 F.3d 7 (2017), the First Circuit addressed issues of first impression that have broad implications and present a reminder to companies to review their arbitration clauses and confirm if they are drafted properly as to the issue of who decides arbitrability issues; a court or arbitrator?