By: Kyle Yager, ALR Senior Editor, 2021

Arbitration has become a very popular and very important alternative legal dispute mechanism in the U.S. It plays a significant role in our justice system.[1] Because of this, whether you are a solo practitioner in general practice or in-house counsel for a Fortune 500 company, every lawyer would be better served having a base level understanding of our arbitration system.[2]

In the interest of developing a foundational comprehension of U.S. arbitration, there are three significant cases worth retaining a working understanding of. All three of these cases have played a substantial role in shaping the way arbitration functions in the U.S.

First, in Rent-A-Center, W., Inc. v. Jackson, the Supreme Court of the United States (“SCOTUS”) ruled that a federal court must enforce an agreement to arbitrate absent a challenge to the specific provision containing that agreement.[3] In so doing, the Court reversed the Ninth Circuit Court of Appeals.[4] This case demonstrates how specific you must be in challenging the validity of an arbitration agreement.

Second, in AT&T Mobility LLC v. Concepcion, SCOTUS held that the Federal Arbitration Act (“FAA”) preempts any conflicting state laws.[5] This ruling is a significant decision to keep in mind, because it is in your best interest to reference the FAA before relying on any state law regarding arbitration.[6]

Lastly, in Oxford Health Plans LLC v. Sutter, SCOTUS ruled in firm support of generally enforcing an arbitrator’s ruling.[7] In its analysis, the Court explained that the issue is not “whether the arbitrator construed the parties’ contract correctly, but whether he construed it at all.[8]” The Court further explained that even “grave error” in interpreting the contract is not enough to overturn an arbitrator’s ruling.[9] In sum, this case demonstrates how difficult it is to get an arbitration award vacated.[10]

These three cases are very important because they pervade throughout arbitration matters in the U.S. Notably, this is not a comprehensive list of significant arbitration case rulings to be aware of, but these serve as a good base for understanding the current U.S. arbitration system.

[1]. See Liz Kramer, Five Arbitration Cases You Should Know (Blogiversary Listickle #3), Arbitration Nation (Aug. 24, 2016) https://www.arbitrationnation.com/five-arbitration-cases-you-should-know-blogiversary-listicle-3/.

[2]. See id.

[3]. Rent-A-Center, W., Inc. v. Jackson, 561 U.S. 63, 74 (2010).

[4]. Id. at 76.

[5]. AT&T Mobility LLC v. Concepcion, 563 U.S. 333, 352 (2011).

[6]. See Kramer, supra note 1.

[7]. Oxford Health Plans LLC v. Sutter, 569 U.S. 564, 573 (2013).

[8]. Id.

[9]. Id. at 572.

[10]. See Kramer, supra note 1.