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17-1272 HENRY SCHEIN, INC. V. ARCHER AND WHITE SALES, INC. DECISION BELOW: 878 F.3d 488 CERT. GRANTED 6/25/2018 QUESTION PRESENTED: Whether the Federal Arbitration Act permits a court to decline to enforce an agreement delegating questions of arbitrability to an arbitrator if the court concludes the claim of arbitrability is "wholly groundless." LOWER COURT CASE NUMBER: 16-41674
In the case of Henry Schein Inc. v. Archer and White Sales Inc., the U.S Supreme Court ruled in favor of Henry Schein, overturning a decision by the Fifth Circuit Court of Appeals. The dispute arose when Archer and White Sales sued Henry Schein for alleged violations of antitrust laws, with both parties having previously agreed to arbitrate any disputes arising under their contract. However, Archer and White argued that this particular dispute was not subject to arbitration due to a clause in their agreement excluding certain claims from arbitration. The lower courts sided with Archer and White but were overturned by the Supreme Court which held that under Federal Arbitration Act (FAA), an arbitrator should decide whether or not a claim is eligible for arbitration if there's "clear and unmistakable evidence" that parties agreed on such arrangement - even if it seems clear as per court’s interpretation that some claims are excluded from arbitration.
In the dissenting opinion for Henry Schein Inc. v. Archer and White Sales Inc., Justice Kavanaugh disagreed with the majority's decision to remand the case back to lower courts, arguing that it was unnecessary and a waste of time. He believed that there was clear evidence in favor of arbitration based on contract language between both parties involved in this dispute, which stated any disputes should be resolved through arbitration except those seeking injunctive relief. The justice argued that since Archer & White did not seek an injunction but monetary damages instead, their claim fell under the scope of mandatory arbitration as per their agreement with Henry Schein Inc.. Therefore, he felt it would have been more appropriate for SCOTUS to make a definitive ruling rather than sending it back down for further proceedings.