{"ID":63013,"name":"Henry Schein Inc. v. Archer and White Sales Inc.","href":"https:\/\/api.oyez.org\/cases\/2018\/17-1272","view_count":0,"docket_number":"17-1272","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Henry Schein, Inc., et al.","second_party":"Archer and White Sales, Inc.","timeline":[{"event":"Granted","dates":[1529902800],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/54324"},{"event":"Argued","dates":[1540789200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/54349"},{"event":"Decided","dates":[1546927200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/54413"}],"lower_court":{"ID":10,"name":"United States Court of Appeals for the Fifth Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/10"},"facts_of_the_case":"\u003Cp\u003EIn 2012, Archer \u0026amp; White Sales, Inc.\u2014a distributor, seller, and servicer for multiple dental equipment manufacturers\u2014filed a lawsuit against Henry Schein, Inc. and its parent company\u2014allegedly the largest distributor and manufacturer of dental equipment in the United States. In its lawsuit, Archer alleged violations of the Sherman Antitrust Act and the Texas Free Enterprise and Antitrust Act. The district court referred the case to a magistrate judge, and Schein moved to compel arbitration pursuant to a clause in a contract (\u201cDealer Agreement\u201d) between Archer and another distributor who was allegedly Schein\u2019s predecessor in interest.\u003C\/p\u003E\n\u003Cp\u003EAfter a hearing, the magistrate judge held (1) the arbitration clause manifested an intent to have an arbitrator decide questions of arbitrability; (2) there is a reasonable construction of the arbitration clause that would call for arbitration in this dispute; and (3) the standard for determining whether equitable estoppel is appropriate requires arbitration against both signatories and non-signatories to the Dealer Agreement.\u003C\/p\u003E\n\u003Cp\u003EThe district court vacated the magistrate judge\u2019s order and held that the court could decide the question of arbitrability, and that the dispute was not arbitrable because the plain language of the arbitration clause expressly excluded suits that involved requests for injunctive relief. The court declined to reach the question of equitable estoppel. Schein appealed to the Fifth Circuit.\u003C\/p\u003E\n\u003Cp\u003EIn the Fifth Circuit, courts must look first to whether the parties \u201cclearly and unmistakably\u201d intended to delegate the question of arbitrability to an arbitrator. If they did, \u201cthe motion to compel arbitration should be granted in almost all cases,\u201d except where \u201cthe argument that the claim at hand is within the scope of the arbitration agreement is \u2018wholly groundless.\u2019\u201d This standard requires consideration of whether there is a plausible argument for the arbitrability of the dispute. If there is no such plausible argument, \u201cthe district court may decide the \u2018gateway\u2019 issue of arbitrability despite a valid delegation clause.\u2019\u201d\u003C\/p\u003E\n\u003Cp\u003EReviewing the district court\u2019s determinations de novo, the Fifth Circuit affirmed the district court.\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes the Federal Arbitration Act permit a court to decline to enforce an agreement delegating questions of arbitrability to an arbitrator if the court concludes the claim of arbitrability is \u201cwholly groundless\u201d?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003EThe \u201cwholly groundless\u201d exception to arbitrability is inconsistent with the Federal Arbitration Act, so the question of arbitrability should be resolved by an arbitrator, not a court. In a unanimous opinion by Justice Brett Kavanaugh, the Court reiterated its prior decisions that parties to a contract have the ultimate say in whether to have an arbitrator or a court resolve disputes\u2014not only the merits of disputes, but also questions of arbitrability. The Court found that in this contract, the parties had delegated to an arbitrator the question of arbitrability, so a court cannot override the contract and resolve such questions.\u003C\/p\u003E\n\u003Cp\u003EThe Court found unpersuasive Archer \u0026amp; White\u2019s arguments to the contrary, holding that neither the text of the Act nor Congress\u2019s intent in designing it supported a reading of the Act that empowers a court to resolve the question of arbitrability against the express wishes of the contracting parties.\u003C\/p\u003E\n\u003Cp\u003EThe Court remanded the case to the Fifth Circuit to consider the question whether the contract in fact delegated the arbitrability question to an arbitrator.\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":33978,"name":"Kannon K. 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