Supreme Court Decision Narrows Courts' Ability to Overturn Arbitration Agreements
On June 21, the Supreme Court reached a 5-4 decision in Rent-A-Center, West, Inc. v. Jackson.
August 19, 2010 at 08:00 PM
2 minute read
In a 5-4 ruling, the Supreme Court decided Rent-A-Center, West, Inc. v. Jackson on June 21, narrowing the courts' ability to overturn arbitration agreements. .
When an agreement delegates the authority to determine the arbitrability of the agreement to the arbitrator, claims that challenge the enforceability and validity of an agreement as a whole will be determined by the arbitrator, the high court said.
The court should only handle claims specifically challenging the validity of the agreement to arbitrate, known as the “delegation provision,” the court found.
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