Certiorari Grant in Third Arbitration Case for 2008-09 Term

I was just informed that certiorari was granted in Arthur Andersen LLP, et al., v. Carlisle, et al. (08-146), on Friday.

The question at issue is whether, under the Federal Arbitration Act, federal circuits courts have jurisdiction to hear appeals of denials of motions to compel arbitration raised by parties that did not sign the underlying arbitration agreement. SCOTUS Blog has the order and the petitioner’s brief at http://www.scotusblog.com/wp/court-to-rule-on-arbitration-case/.

The petitioner characterized the issue in the following way:

In the two decades since Congress added Section
16(a)(1)(A) to the FAA, the courts of appeals have
sharply divided over the meaning and application of
that provision. Even though the language of Section
16(a)(1)(A) permits an immediate appeal of any
order denying a Section 3 motion to stay
proceedings, the courts of appeals disagree on
whether such an appeal is proper when the claim
sought to be stayed involves a non-signatory to the
arbitration agreement.

Note that Section 3 ofthe FAA, 9 U.S.C. § 3, provides that “on application
of one of the parties,” a district court shall stay
proceedings pending arbitration if the district court
concludes that the “issue involved in such suit or
proceeding is referable to arbitration” under “an
agreement in writing for such arbitration.”

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