Yesterday, the U.S. Supreme Court decided Vaden v. Discover Bank (No. 07-773) 556 U.S. __ (2009). Interpreting section 4 of the FAA, the Court held that the federal court had no jurisdiction to compel arbitration because the underlying dispute arose under state law and the whole controversy did not qualify for federal-court adjudication.
Special thanks to our friend Ross Runkel for bringing this important case to our attention. Visit here professor Runkel’s commentary on this case. See also the ABA Journal Law News Now for further commentary.
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arbitration, ADR, law