Bills introduced to override Supreme Court Decision in 14 Penn Plaza | Practical Law

Bills introduced to override Supreme Court Decision in 14 Penn Plaza | Practical Law

Daniel J. Leffell (Partner), Marc Falcone (Partner) and Jeffrey D. Kleinman (Associate), Paul, Weiss, Rifkind, Wharton & Garrison LLP

Bills introduced to override Supreme Court Decision in 14 Penn Plaza

Practical Law Legal Update 7-386-5270 (Approx. 2 pages)

Bills introduced to override Supreme Court Decision in 14 Penn Plaza

Published on 01 Jul 2009USA
Daniel J. Leffell (Partner), Marc Falcone (Partner) and Jeffrey D. Kleinman (Associate), Paul, Weiss, Rifkind, Wharton & Garrison LLP
In April 2009, the Arbitration Fairness Act (S. 931), a bill that would make predispute arbitration agreements unenforceable if they require arbitration of employment, consumer, franchise, or civil rights disputes, was introduced.
On 29 April 2009, Senator Russ Feingold (D-WI) introduced the Arbitration Fairness Act (S. 931), a bill that would make predispute arbitration agreements unenforceable if they require arbitration of employment, consumer, franchise, or civil rights disputes. A similar bill was introduced in the House by Rep. Henry Johnson (D-GA) on 12 February 2009 (H.R. 1020). The legislation appears intended to supersede the Supreme Court's decision in 14 Penn Plaza LLC v. Pyett, 129 S.Ct. 1456 (2009) (see Legal update, Supreme Court holds arbitration provisions in collective bargaining agreements enforceable). The proposed legislation also provides that the applicability of the statute to an arbitration agreement is to be determined under Federal law and by a court, rather than by an arbitrator. It is too early to assess the chances of the bill becoming law as drafted, but enactment in some form would be a legislative check on the Supreme Court's willingness to permit potential plaintiffs to consign future claims to arbitration.