United States Supreme Court hears argument regarding practical effects of denying third-party, non-signatories the right to invoke arbitration provisions

Client(s) Washington Legal Foundation

The United States Supreme Court decided Arthur Anderson v. Carlisle, No. 08-146 on May 4, 2009, in which Jones Day represented pro bono one of the two amici who appeared in the matter, the Washington Legal Foundation. Jones Day filed a brief that explained the practical effects of denying third-party, non-signatories the right to invoke arbitration provisions under the Federal Arbitration Act. Justice Scalia, in a 6-3 decision, reversed the Sixth Circuit and rejected the lower court's position which had been endorsed by Chief Judge Roberts while sitting on the DC Circuit, among others. The Supreme Court held that appellate jurisdiction exists over such denials by the district court and that trial courts have jurisdiction under the Federal Arbitration Act to entertain claims of arbitrability by third parties. This decision is of considerable import to commercial parties seeking to invoke arbitration provisions.

Arthur Andersen L.L.P. v. Carlisle, 129 S.Ct. 1896 (2009)