The Supreme Court Hears Argument Concerning the Ability of Non-Signatories to Arbitration Agreements to Stay Claims under the Federal Arbitration Act
The United States Supreme Court heard oral argument in Arthur Andersen, LLP v. Carlisle, No. 08-146, a case involving the ability of non-signatories to an arbitration agreement to stay court claims in favor of arbitration under the Federal Arbitration Act ("FAA"). Specifically at issue here is: (i) whether a party to a litigation can obtain a stay of claims against it under section 3 of the FAA when the party is not a signatory to the written agreement providing for arbitration; and (ii) whether federal appellate courts have jurisdiction to review an appeal of the denial of such motion under section 16 of the FAA.