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SCOTUS Rules Prejudice Not Necessary in Arbitration Rights Case

U.S. Supreme Court resolved circuit split on when party has waived contractual right to arbitrate by participating in litigation prior. In Morgan v. Sundance, party resisting arbitration doesn't need to show prejudice by other party delay in compelling arbitration. ....

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Prevent Waiving Your Right To Arbitration

An arbitration agreement needs to invoke the right to arbitrate when a dispute arises, rather than participating in litigation in court and later trying to enforce the arbitration clause, as FAA requires arbitration clauses to be enforced as any other contract clauses ....

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SCOTUS: Consequences of Delaying Contractual Arbitration Provisions

By eliminating the prejudice requirement, the Court removed a safety valve that saved parties who decided to forgo arbitration for a period of time.A party seeking to invoke the right to arbitrate should not delay, or they will risk forfeiture at a later time. ....

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SCOTUS Removes Prejudice Requirement For Arbitration Waiver

In Morgan v. Sundance, Inc., Supreme Court resolved circuit split on if party waived arbitration right. Party waived right if it knew of the right, acted inconsistently with it, prejudiced other party. Court removed prejudice requirement under FAA Federal Arbitration Act. ....

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Recent U.S. Supreme Court Rulings Clarify Arbitration Rights

Supreme Court Justice Elena Kagan authored pair of arbitration opinions. March 31 Badgerow v. Walters ruling, Justice Kagan, wrote for 8/1 majority that court must have independent basis of federal jurisdiction to undertake petition to confirm, vacate an arbitration award. ....

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