A recent Supreme Court decision clarifying the boundaries between arbitral and judicial authority will reshape commercial-arbitration practice in the U.S. The decision resolves a long-standing circuit split on the question of when arbitrators — rather than courts — have authority to determine the scope of their own jurisdiction.
The practical consequences are significant. Contracts containing arbitration provisions should be reviewed against the new framework, with particular attention to delegation clauses, scope-of-disputes definitions, and the timing of motions to compel.
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