Arthur Andersen LLP, et al. v. Carlisle, et al.

Case Updates

The Supreme Court concluded that Section 3 of the FAA provides non-signatories to an arbitration agreement the right to stay and immediately appeal litigation pertaining to the enforcement of the arbitration agreement.

NCLC urged the U.S. Supreme Court to recognize that Section 3 of the FAA requires litigation to be stayed if the claim falls within the scope of the arbitration agreement, even if the party bringing the motion was a non-signatory to the agreement. NCLC argued that prohibiting non-signatories from enforcing arbitration agreements frustrates the purposes of the FAA because it limits the freedom to contract for arbitration of disputes involving claims against the non-signatories, and because it upsets the settled expectations among parties that certain disputes will be arbitrated.