The Supreme Court’s newest justice Brett Kavanaugh issued his first opinion on Tuesday in a unanimous ruling which could help companies keeps disputes in third-party arbitration.
The dispute stems from a lawsuit Archer & White Sales Inc., a medical equipment distributor, brought against its business competitor Henry Schein Inc. alleging Schein violated federal and state antitrust laws.
The justices held that courts must enforce contracts which force parties to settle disputes privately through third-party arbitration according to their terms under the Federal Arbitration Act even if one party claims that the argument for arbitration is “wholly groundless.”
“When the parties’ contract delegates the arbitrability circumstances, a court possesses no power to decide the arbitrability issue,” Kavanaugh wrote.
Read more at The Hill.