Is the district court required in all cases to determine claims that an arbitration agreement subject to the Federal Arbitration Act is unconscionable, even when the parties to the contract have clearly and unmistakably assigned this “gateway” issue to the arbitrator for decision?
Supreme Court upholds enforceability of arbitration agreements
The Supreme Court upheld an arbitration agreement between Rent-a-Center and a former employee, ruling that an arbitrator must decide upon the enforceability of an arbitration agreement when the agreement is challenged as a whole.
U.S. Chamber files amicus brief
NCLC urged the Supreme Court to uphold an arbitration agreement between Rent-a-Center and a former employee. The former employee, who had agreed to arbitrate any claims against the company, sued Rent-a-Center for alleged racial discrimination. In its brief, NCLC argued that the arbitration agreement must be enforced as written. NCLC also warned that the plaintiffs' bar is using the unconscionability doctrine to bypass arbitration, which has proven a cost-effective alternative to litigation.