The Future of Arbitrability Disputes in Light of the Supreme Court's Ruling in 'Coinbase'
"The court's decision is a significant departure from longstanding precedent that an arbitrator in arbitration was vested with the authority to make the decision as to arbitrability," write Jose L. Linares and Mark M. Makhail of McCarter & English.
August 20, 2024 at 10:00 AM
6 minute read
Arbitration has been widely accepted as an ADR process that provides parties the opportunity to quickly and efficiently resolve their disputes without going through the long, expensive, and arduous process of litigation. The Supreme Court's recent decision in Coinbase v. Suski, 144 S. Ct. 1186 (2024), has, in part, disrupted this understanding and changed the ADR landscape. The court held that when there are conflicting agreements regarding the arbitrability of a dispute, it is solely a question for the judiciary to determine which agreement applies.
The relevant facts of that case are as follows. Coinbase, a cryptocurrency exchange platform, had a user agreement that all users were required to sign when creating an account. That agreement required that disputes—including whether a dispute required arbitration—be arbitrated. Coinbase separately ran a sweepstakes that required a separate agreement with a forum selection clause that required all disputes be disposed in California courts.
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