The United States Supreme Court has recently approved a petition for certiorari to survey a decision from the Ninth Circuit, presenting a key question for arbitration agreements that contain delegation clauses. Particularly, the issue under review pertains to whether a court or an arbitrator should decide if a subsequent contract that remains silent on arbitration and delegation limits the terms of an existing agreement incorporating a delegation clause. A delegation clause, it bears noting, stipulates that an arbitrator — rather than a court — will make determinations on preliminary questions related to the arbitration.
As provided in the original JD Supra report, the Supreme Court’s decision to delve into this issue is deserving of attention, particularly for legal professionals engaged in drafting arbitration agreements as part of their practice. It brings to light the importance of mindful contract drafting and the subsequent effects on dispute resolution mechanisms.
As the Supreme Court is set to resolve this critical legal concern, the impact may be wide-ranging, affecting not just the litigants in question but also future contractual dealings. It may also provide an essential commentary on the degree of autonomy and jurisdiction accorded to arbitrators under delegation clauses.
Conclusively, legal professionals would undoubtedly benefit from keeping a close eye on the potentially far-reaching outcomes of this Supreme Court review. For now, it brings into focus the careful drafting of arbitration clauses and the fundamental decisions about court versus arbitrator jurisdiction over disputes arising from contractual agreements.