Supreme Court Will Hear Case Regarding Arbitration Waiver

Under the Federal Arbitration Act, when does a party’s delay in seeking arbitration constitute a waiver of its contractual right? There is a split in the federal circuits, with a majority holding that prejudice must be demonstrated, while a minority holding that prejudice is only one factor to consider in determining whether a party has waived its right to arbitrate. The Supreme Court will address this split, having granted certiorari in Morgan v. Sundance, Inc.

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