Arbitral Power and the Limits of Contract: The New Trilogy - ARIA - Vol. 22 No. 3 2011
Author(s):
Alan Scott Rau
Page Count:
116 pages
Published:
March, 2012
Description:
Originally from American Review of International Arbitration - ARIA
Preview Page
The American law of arbitration has for some reason been replete with what
we have become accustomed to call “trilogies”1 – and the last two terms of the
U.S. Supreme Court have curiously continued that pattern. Once again the Court
has handed us three leading cases on closely related themes – and these decisions
have turned out in fact to be in many ways the most interesting of the lot. (I am
referring of course to Stolt-Nielsen,2 Rent-A-Center,3 and Concepcion.4) All three
amount to extended riffs on the Question of Questions, the scope of arbitral
power: And so the Court has continued to dip its finger into this rich mixture –
compounded of notions of judicial review, “arbitrability,” “separability,”
compétence/compétence, and the preemption of state law – all of our hard-earned
lore and learning is there.
Undoubtedly for the moment the greatest salience will be with respect to
arbitration clauses in contracts of adhesion entered into by consumers and
employees – and yet this recent jurisprudence has the potential of sweeping far
more broadly. It seems reasonably clear that these cases will continue to generate
endless discussion. God knows that alone would be sinister enough, but the
troubling implications don’t quite stop there. Things now seem curiously
muddled: If our law of arbitration now no longer seems to have any clear
unifying theme, any fil conducteur, this suggests that private adjudication – rather
than presenting us as it once did with a coherent and self-contained body of
doctrine – has become a hostage to a game played out on a larger stage, a pawn of
wider, systemic “political” concerns. And so – yet another untoward result –
these cases will require the reevaluation of what seemed, for a while, to constitute
comfortably settled certainties. Here is at least one step in that direction.
comfortably settled certainties. Here is at least one step in that direction.