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On Monday, May 4, the Supreme Court announced its decision in Arthur Andersen v. Carlisle. In this case, the Supreme Court considered whether the Federal Arbitration Act allows federal courts to issue, and review denial of, Section 3 orders to stay claims pending arbitration against nonsignatories to an abitration agreement. In a 6-3 decision delivered by Justice Scalia, the Court held that a litigant not signatory to an arbitration agreement may invoke Section 3 provided the agreement is otherwise enforceable under the relevant contract law and that any denial of such a motion is appealable, reversing the Sixth Circuit decision below. O’Melveny & Myers partner Brian Brooks discusses the decision.

 

 

 

Oral Argument - March 3, 2009:
http://www.supremecourtus.gov/oral_arguments/argument_transcripts/08-146.pdf

 

Decision - May 4, 2009:
http://www.supremecourtus.gov/opinions/08pdf/08-146.pdf

 

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