Text or purpose? Plain language or pragmatism? Though the text does not provide for it, should courts interpret Sections 9 and 10 of the Federal Arbitration Act (FAA) to provide a “look through” approach to federal jurisdiction over confirming or vacating an arbitral award?
No, according to Justice Kagan’s 8-1 opinion in Bagderow v. Walters, courts should not pull “out of thin air” “look-through” jurisdiction “without textual support.” So, even though the underlying arbitral award in Bagderow addressed federal employment law, the Fifth Circuit erred in holding that a federal court in Louisiana could exercise jurisdiction over dueling petitions to vacate or confirm that award. Neither Sections 9 nor 10 include language permitting a “look through” approach to a federal court’s jurisdiction.
The Bagderow decision builds on the Court’s 2009 decision in Vaden v. Discover Bank, 556 U.S. 49 (2009); there, the Court held that a federal court should “look through” a petition to compel arbitration under Section 4 to the “underlying substantive controversy” between the parties. As the Court explained in Bagderow, the decision in Vaden rested on the particular language in Section 4 of the FAA (emphasis added):
"A party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate under a written agreement for arbitration may petition any United States district court which, save for such agreement, would have jurisdiction . . . over the controversy between the parties...
What This Story Is About Tennessee election officials are debunking a social-media claim that a poll worker’s administrative marking automatically invalidates a ballot. Why It Matters The statemen...