SCOTUScast 10-17-08 featuring Amy Barrett
Vaden v. Discover Bank
On Monday, October 6, the Supreme Court heard oral argument in Vaden v. Discover Bank. In this case, the Supreme Court deals with the question of federal jurisdiction over state-law arbitration obligations. The case arises from a dispute between Discover Bank and Discover cardholder Betty Vaden. When Mrs. Vaden filed class-action counterclaims against Discover in response to their suit against her for non-payment, Discover asked the Federal District Court to compel arbitration per the cardmember agreement. Mrs. Vaden appealed on the grounds that the District Court did not have subject-matter jurisdiction because the arbitration agreement was a matter of state law, but the Fourth Circuit "looked through" the petition to compel and found that the underlying dispute involved federal law, affirming the District Court's decision to compel arbitration. The Supreme Court is now asked to decide whether such a suit brought under the Federal Arbitration Act "aris[es] under" federal law when the petition to compel raises no federal question, but the underlying dispute does involve federal law. University of Notre Dame Professor Law Amy Barrett discusses the case.
Oral Argument - October 6, 2008:
http://www.supremecourtus.gov/oral_arguments/argument_transcripts/07-773.pdf
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