Page:Henry Schein, Inc. v. Archer & White Sales, Inc..pdf/5

Rh parties’ antitrust dispute to arbitration. Archer and White objected, arguing that the dispute was not subject to arbitration because Archer and White’s complaint sought injunctive relief, at least in part. According to Archer and White, the parties’ contract barred arbitration of disputes when the plaintiff sought injunctive relief, even if only in part.

The question then became: Who decides whether the antitrust dispute is subject to arbitration? The rules of the American Arbitration Association provide that arbitrators have the power to resolve arbitrability questions. Schein contended that the contract’s express incorporation of the American Arbitration Association’s rules meant that an arbitrator–not the court–had to decide whether the arbitration agreement applied to this particular dispute. Archer and White responded that in cases where the defendant’s argument for arbitration is wholly groundless–as Archer and White argued was the case here–the District Court itself may resolve the threshold question of arbitrability.

Relying on Fifth Circuit precedent, the District Court agreed with Archer and White about the existence of a “wholly groundless” exception, and ruled that Schein’s argument for arbitration was wholly groundless. The District Court therefore denied Schein’s motion to compel arbitration. The Fifth Circuit affirmed.

In light of disagreement in the Courts of Appeals over whether the “wholly groundless” exception is consistent with the Federal Arbitration Act, we granted certiorari, 585 U. S. ___ (2018). Compare 878 F. 3d 488 (CA5 2017) (case below); Simply Wireless, Inc. v. T-Mobile US, Inc., 877 F. 3d 522 (CA4 2017); Douglas v. Regions Bank, 757 F. 3d 460 (CA5 2014); Turi v. Main Street Adoption Servs., LLP, 633 F. 3d 496 (CA6 2011); Qualcomm, Inc. v. Nokia Corp., 466 F. 3d 1366 (CA Fed. 2006), with Belnap v. Iasis Healthcare, 844 F. 3d 1272 (CA10 2017); Jones v. Waffle