The Supreme Court reversed the 5th Circuit Court of Appeals by 8-1 on March 31, limiting when federal courts have jurisdiction to confirm or vacate an arbitration award under the Federal Arbitration Act. The case is Badgerow v. Walters, court file 20-1143. Oral arguments were heard on Nov. 2, 2021. The majority decision, joined by seven justices, was written by Justice Elena Kagan. Justice Stephen Breyer was the sole dissenter. According to Kagan’s opinion (pdf) in the case, petitioner Denise Badgerow was a financial adviser for REJ Properties, a firm run by respondent Greg Walters and two others. Her contract required her to bring any employment claims to arbitration, instead of court. She was fired and launched an arbitration action against the company. Arbitrators ruled for the company. Badgerow pressed her claim, arguing the arbitration process was tainted by fraud, and sued in state court in Louisiana. Walters had the …
Supreme Court Reins in Federal Courts’ Ability to Handle Arbitration Disputes
March 31, 2022
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