Morgan v. Sundance, Inc.
View Official PDFBelow are plain-language sections to help you understand what the Court decided in Morgan v. Sundance, Inc. and why it matters. Quotes are taken from the syllabus (the Court’s short summary at the start of the opinion).
Summary
A short, plain-English overview of Morgan v. Sundance, Inc..
In Morgan v. Sundance, Inc., the Supreme Court addressed whether federal courts can require a showing of prejudice to waive the right to arbitrate under the Federal Arbitration Act (FAA). The Court vacated the Eighth Circuit's decision, which had imposed such a requirement, and remanded the case for further consideration. The ruling emphasized that arbitration agreements should be treated like other contracts without special procedural rules favoring arbitration.
Holding
The single most important “bottom line” of what the Court decided in Morgan v. Sundance, Inc..
The Court held that the Eighth Circuit erred by conditioning a waiver of the right to arbitrate on a showing of prejudice.
Constitutional Concepts
These are the Constitution-related themes that appear in Morgan v. Sundance, Inc.. Click a concept to see other cases that involve the same idea.
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Why Judicial Review is relevant to Morgan v. Sundance, Inc.
The Court exercised its power to review and invalidate the Eighth Circuit's arbitration-specific waiver rule.
Syllabus excerpt (verbatim)The Court's sole holding today is that it may not make up a new procedural rule based on the FAA's 'policy favoring arbitration.'
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Why Procedural Due Process is relevant to Morgan v. Sundance, Inc.
The case involves the application of federal procedural rules, specifically concerning waiver and arbitration.
Syllabus excerpt (verbatim)A directive to treat arbitration applications 'in the manner provided by law' for all other motions is simply a command to apply the usual federal procedural rules.
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Why Preemption is relevant to Morgan v. Sundance, Inc.
The decision addresses the federal policy under the FAA and its impact on state and federal court procedures.
Syllabus excerpt (verbatim)The text of the FAA makes clear that courts are not to create arbitration-specific procedural rules like the one here.
Key Quotes
Short excerpts from the syllabus in Morgan v. Sundance, Inc. that support the summary and concepts above.
The Eighth Circuit erred in conditioning a waiver of the right to arbitrate on a showing of prejudice.
Federal courts may not create arbitration-specific variants of federal procedural rules.
The federal policy is about treating arbitration contracts like all others, not about fostering arbitration.