Supreme Court Makes It Easier To Establish A Waiver Of Arbitration Through A Pursuit Of Litigation
On May 23, the Supreme Court resolved a circuit split in holding that the Federal Arbitration Act's (FAA) "policy favoring arbitration" does not allow federal courts to create arbitration-specific federal procedural rules.1 Specifically, the Court took issue with the rule adopted by most federal circuits, under which waiver of an arbitration right required a showing of prejudice. Writing for a unanimous court, Justice Kagan provided important guidance on the enforceability of arbitration agreements in federal courts. [...]