PRACTITIONER BLOG
Read our analyses of developments in Impact Litigation and stay current on class action law
Southwest flies into trouble as SCOTUS holds transportation workers exempt from Federal Arbitration Act
For decades, conventional wisdom favored an expansive, business-friendly interpretation of the Federal Arbitration Act of 1925—one that has made it easier for corporations to force workers and consumers into arbitration. But this term, in Southwest Airlines v. Saxon, the Supreme Court took a different approach. Following argument by our colleague Jennifer Bennett, the Court zeroed in on the text of the FAA—specifically, how that text would have been understood when the statute was passed in 1925—and recognized an important limitation on what types of workers can be forced into arbitration.
Sixth Circuit Ruling Restricts Imposition of Arbitration
A recent Sixth Circuit decision, Taylor v. Pilot Corp, broadly reaffirms that an agreement to arbitrate must be just that—an agreement. It suggests that questions about the formation of that agreement must be decided by a court—not an arbitrator. And it reaffirms the courts’ power to supervise discovery going to the question of contract formation without interference from appellate courts or arbitrators.