U.S. Supreme Court to Hear Case on Federal Arbitration Act

By: Benjamin D. Kerr, Esquire bdk@muslaw.com

On November 7, 2007, the Supreme Court will hear arguments regarding Hall Street Associates, L.L.C. v. Mattel, Inc., a case on appeal from the United States Court of Appeals for the Ninth Circuit. At issue is whether the terms of the Federal Arbitration Act (“FAA”) preclude companies from agreeing to expanded grounds for judicial review of an arbitration award, outside of the bases for review which are set forth in the FAA. The Ninth Circuit had ruled that the FAA precluded such agreements. Arbitration is traditionally marketed as less expensive and faster than litigation, however, expanded judicial review has the potential to involve lengthy appeals processes in what is supposed to be a streamlined process.