Locke Lord’s Paul Schuster and Cynthia Timms (both of Dallas) were part of a team of lawyers that represented Henry Schein Inc. before the U.S. Supreme Court. On Jan. 8, 2019, the Supreme Court unanimously vacated a Fifth Circuit decision that had affirmed the trial court’s denial of Henry Schein’s motion to refer the dispute to arbitration. The case concerned whether courts retain the power — under what has become known as the “wholly groundless exception” — to determine whether a case is to be arbitrated when the parties have delegated that decision to the arbitrator. The Supreme Court held that, when parties contractually delegate the question of arbitrability to the arbitrator, courts must allow the arbitrator to determine whether the case should be in arbitration.
Posted January 9, 2019