U.S. Supreme Court Enforces Arbitration Rights: Potential Tool for Insureds?
On May 4, 2009, the U.S. Supreme Court held that non-signatories to an arbitration agreement may obtain a stay of claims in favor of arbitration under Section 3 of the Federal Arbitration Act (“FAA”). The decision resolves a circuit split and allows non-signatory, third parties to benefit from a stay of litigation while an arbitration proceeds between a plaintiff and co-defendant. Such an intervening arbitration may further benefit third parties by possibly giving rise to preclusive effects on a plaintiff’s claims. View full article (PDF).