SCOTUS Provides Clarity on Federal Arbitration Act Jurisdiction

Highlights
The U.S. Supreme Court adopted a restrictive view of federal jurisdiction to review an arbitrator’s award under the Federal Arbitration Act, requiring an independent basis for federal jurisdiction for the petition
Circuit courts have been split over whether the standard for federal court jurisdiction to compel arbitration was also the standard for federal jurisdiction over petitions to enforce or vacate an arbitrator’s award
Some petitions previously brought in federal court must be brought in state court
The U.S. Supreme Court recently provided clarity on when a litigant may petition a federal court to vacate, modify or affirm an arbitrator’s award under the Federal Arbitration Act (FAA). The decision in Badgerow v. Walters et al., resolved a split among circuit courts of appeals regarding the proper standard to apply when determining if federal jurisdiction exists.
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