The United States Supreme Court Has Held That a Mandatory Arbitration Clause
1. First generation housing. — Southland Corp. v Keating, 15×15. 465 USA 1. a dispute relating to an arbitration clause in a franchise agreement, 16×16. See id. at 3-4. has begun the process of federalization of state contract law. Chief Justice Burger, who wrote for a majority, noted that “by passing Article 2 of the [FAA], Congress declared a national policy in favor of arbitration and removed the power of states to require a judicial forum to settle claims that the parties had agreed to resolve through arbitration.” 17×17. Id. at p. 10.
The court affirmed that Congress enacted § 2 in accordance with its power to deal with the trade clause.18×18. Id. at 11. The court also said that if the FAA filed in federal court but not in state court, the law would “encourage and reward forum shopping.” 7×19 p.m. Id. at p. 15. The tribunal`s arbitral awards affect whether and when a party can resolve disputes before the arbitral tribunal and provide guidance on how to draft effective arbitration provisions to avoid lengthy disputes on arbitration matters – that is, whether a particular dispute or type of dispute falls within the jurisdiction of the arbitrator (or arbitrator) appointed by the parties. Unlike the first two unanimous arbitral awards, the court split 5-4 into Lamps Plus. Chief Justice John G. Roberts, Jr. issued the court`s opinion, noting that an ambiguous agreement under the FAA cannot provide the “contractual basis” necessary to conclude that the parties have agreed to submit to class arbitration.
In contrast, a significant majority of state constitutions guarantee some form of individual right of access to justice.70×70. See Constitutional Access to Justice Provisions — Judicial Administration State Links, Nat`l Ctr. for State Cts., www.ncsc.org/topics/judicial-officers/judicial-administration/state-links [perma.cc/P5XR-CEMD]. Far from assuming parity between judicial settlement and private settlement, these provisions seem, taken literally, to treat state judicial systems as superior to arbitration. Many state constitutions also require the availability of a remedy for infringements.71×71. While federal courts sometimes cite Marbury v. Madison72×72. 5 U.S.
(1 Cranch) 137 (1803). Mantra that the existence of a right necessarily implies the availability of a remedy,73×73. Id. to 163rd states – but not federal courts74×74. Fallon et al., footnote 8 above, p. 330. — have taken this principle more literally and elevated it to the status of constitutional decrees. But decisions such as Concepcion and Italian Colors prevent state courts from fully enforcing these constitutional rights of the state. This system of deciding disputes between the FAA has proven confusing to the federal system, and the result is a dynamic that runs counter to some of the fundamental obligations of the constitutional order. This note argues that without legislative changes and despite fierce criticism of the Supreme Court`s interpretation of § 2, state courts should apply the FAA as a loyal federal court. First, Article VI of the Constitution was drafted and ratified in light of the type of recalcitrance shown by state courts with respect to FAA COURT decisions. Second, the FAA`s jurisprudence and the Court`s Stare Decisis doctrine make it clear that the Court`s current interpretation of the FAA will remain in this case.
In this environment, state courts that disregard FAA decisions contribute to the FAA`s maladministration, while doing little to make room for the functioning of state law. Third, state court opposition to the FAA has exacerbated rather than remedied the disruption of the federal-state balance. It has contributed to an unequal, unpredictable and dependent administration on the forum of federal law, led to opaque judicial decision-making and undermined the legitimacy of the national legal system. The application of stare decisis is a chaotic undertaking and inevitably involves normative ideas that not everyone will share. Doctrinally speaking, however, two theses are clear, firm and relevant. First, regardless of the meaning of stare decisis, there is usually a strict rule of stare decisis in cases of legal interpretation.140×140. See Kimble v. Marvel Ent., LLC, 576 U.S. 446, 456 (2015); William N.
Eskridge, Jr., Overoection of Legislative Precedents, 76 Geo. L.J. 1361, 1362 (1988). The justification for this rule is fundamentally based on a justification for the separation of powers: Congress has the power to amend or repeal the law if the Court misinterprets instructions that violate the law, and the imposition of a “super heavy” burden on the court`s review of a law encourages Congress to fulfill its functions of overseeing the judiciary and ensuring its approval of the will.141×141. Amy Coney Barrett, Statutory Stare Decisis in the Courts of Appeals, 73 Geo. Wash. L. Rev. 317, 327 (2005); see also id.
at 323, 325. Second, the precedent in cases involving property and contractual rights is “at [their] extreme”.142×142. Kimble, 576 U.S. to 457 (city payne v. Tennessee, 501 U.S. 808, 828 (1991)). Courts do not operate in silos, and private parties in the business world often manage their cases based on the existing understanding of their rights and obligations. The Federal Constitution guarantees due process, but does not prescribe or encourage access to a public court at all.
Several Supreme Court justices have indicated that such a right does not exist.67×67. See e.B. Bounds v. Smith, 430 U.S. 817, 840 (1977) (Rehnquist, J., dissenting); id. at 833–34 (Burger, C.J., different). The FaA case law itself illustrates this lack of preference: in FAA cases, the court regularly assumes that litigation and arbitration are equally acceptable methods of dispute resolution.68×68. David Horton, Construction Clause: A Glimpse into Judicial and Arbitral Decision-Making, 68 Duke L.J. 1323, 1329 & n.33 (2019). This hypothesis of equality has become “a pillar of contemporary arbitration law”. No.
69×69. Id. at 1329. In pre-trial detention, the Fifth Circuit “re-examined” the arbitration clause, but noted that the parties had “not clearly and unequivocally delegated the issue of arbitrability to an arbitrator.” The contract expressly excluded “injunctions” from the provision requiring arbitration, and the Fifth Circuit emphasized that the placement of that exception and the absence of a qualifier meant that any claim, including a request for an injunction, was excluded from the arbitration provision. Since injunctive relief was also sought in addition to damages, the tribunal concluded that the dispute was not subject to the arbitration clause at all and that, therefore, the rules that relieved arbitrability to an arbitrator were not applicable […].