NCLC Applauds Supreme Court Decision Holding Contract Disputes Resolvable by Arbitration

Disputes Resolvable by Arbitration

WASHINGTON, D.C.—The National Chamber Litigation Center (NCLC) applauded yesterday's U.S. Supreme Court decision in Buckeye Check Cashing v. Cardegna et. al. that enforces arbitration agreements in contract disputes.

"Businesses use arbitration because it is a fairer, faster, and less expensive way of resolving contract disputes," said NCLC's Senior Vice President Robin Conrad. "This decision sends a strong message to the judiciary to not interfere with an arbitration system that has proven a useful tool in resolving legal disagreements."

Allowing courts to ignore arbitration agreements when a party challenges the validity of the underlying contract not only conflicts with the intent of the Federal Arbitration Act, but would also clog the courts with costly, unnecessary lawsuits, according to the NCLC.

The NCLC filed an amicus brief in the case, and held a practice session for counsel who successfully argued the case before the high court. In its brief, the NCLC noted that agreements providing for the arbitration of disputes are standard features of many business contracts. Because companies that use arbitration agreements may be sued in a wide variety of state and federal courts, they rely on the protection afforded by the Federal Arbitration Act to ensure that their arbitration agreements are consistently enforced.

NCLC, a membership organization that advocates fair treatment of business in the courts and before regulatory agencies, is the public policy law firm of the U.S. Chamber of Commerce. The Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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06-22