Wednesday, May 13, 2009

Supreme Court Limits Federal Jurisdiction to Compel Arbitration

ABA's Litigation News has a story on the Supreme Court's recent decision in Vaden v. Discover Bank. Here is an excerpt:

Federal court jurisdiction to enforce arbitration agreements is not as broad as one may have thought, according to a recent U.S. Supreme Court decision. Vaden v. Discover Bank.

In Vaden, the Supreme Court has held that a federal district court may exercise jurisdiction over a petition to compel arbitration of litigation pending in state court only where the complaint, and not the counterclaim, in the state action establishes a basis for federal jurisdiction. Where a complaint rests on state law only, a federal law counterclaim is not sufficient to vest jurisdiction in the district court.

Read the entire article by clicking here.


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