Judges’ Airline Ruling Bolsters Arbitration Course Correction

By Nantiya Ruan (June 16, 2022, 3:11 PM EDT) – How far does the Federal Arbitration Act policy go in favor of arbitration? Given recent personnel changes in our highest court, the United States Supreme Court’s latest decisions on labor dispute arbitration, Southwest Airlines Co. v. Saxon[1] and Morgan v. Sundance Inc.,[2] shed light on the future of labor arbitration.

Both decisions limit the scope of binding arbitration and, in doing so, chastise lower courts for relying too heavily on FAA policy in rulings in favor of arbitration. And notably, both decisions are unanimous, making a strong statement about federal courts going too far in a rush to favor arbitration.

Morgan v. Sundance

First the…

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