U.S. Supreme Court Rejects “Wholly Groundless” Exception To Arbitrability

On January 8, 2019, in Henry Schein Inc., et al., v. Archer & White Sales, Inc., the United States Supreme Court, following its 1995 decision in First Options of Chicago v. Kaplan, 561 U.S. 938, held that when parties delegate by “clear and unmistakable” evidence “gateway” questions of arbitrability to the arbitrators, such as whether the parties have agreed to arbitrate or whether their agreement covers a particular controversy, it is for the arbitrators to decide such questions. The Court rejected the notion that if a court determines that the claim of arbitrability is “wholly groundless”, the question need not be addressed by the arbitrators.

Henry Schein Inc., et al., v. Archer & White Sales, Inc.