The Supreme Court of the United States’ unanimous decision in Morgan v. Sundance, Inc. is a sea change that reverses longstanding precedent adopted by nine circuit courts requiring a party opposing arbitration to demonstrate prejudicial harm before an arbitration clause is considered waived. The Court’s ruling eliminates a significant protection for litigants in federal court who seek to compel arbitration. Litigants seeking to enforce contractual arbitration provisions pursuant to the Federal Arbitration Act (FAA) are cautioned to do so early in federal court proceedings to avoid a potential waiver.
Read the full Alert on the Duane Morris website.