This educational guide is based on the linked primary sources. It is not a Court publication, is not affiliated with the Court, and is not legal advice.
In brief
Overview
The dispute centers on whether courts should decide arbitrability and the scope of arbitration remedies, particularly in the context of alleged RICO violations.
Background and question before the Court
Petitioners contend that the enforceability of a limitation on arbitration remedies is a matter for the arbitrator, not a gateway issue of arbitrability.
According to Joe R. Whatley, Jr., according to Joe R. Whatley, Jr., respondent argues that arbitrability should be determined by the court, rejecting any presumption favoring the arbitrator.
According to Justice, the Court is considering whether an alleged RICO violation should be decided by the arbitrator and, if so, whether the remedy (e.g., treble damages) would be within the arbitrator’s authority.
What each side argues
Petitioners
Petitioners argue that the enforceability of a limitation on arbitration remedies should be decided by the arbitrator, not the court.
Respondent
According to Joe R. Whatley, Jr., according to Joe R. Whatley, Jr., respondent maintains that arbitrability is a matter for the court, not the arbitrator.
According to Joe R. Whatley, Jr., according to Joe R. Whatley, Jr., respondent notes that limits on arbitration remedies are rare and have been attacked by the Court in the past.
According to Mr. Whatley, respondent acknowledges that one‑sided arbitration contracts are often enforced, even though they may appear unfair.
According to Mr. Whatley, if the arbitrator cannot award damages, the parties would have to pursue damages in court after a violation finding.
What happened at oral argument
Justice Stevens asked whether the arbitrator must decide if the contract implicitly permits waiving a particular remedy.
According to Justice, a Justice inquired whether there was a RICO violation and whether the scope of the remedy rises to that level.
According to Justice, a Justice questioned whether the arbitrator should decide a RICO violation and, if so, whether the remedy (treble damages) could be resolved in court.
A Justice asked whether the parties could agree in advance to limit damages to double damages in court rather than arbitration.
According to Chief Justice Rehnquist, chief Justice Rehnquist noted that the case was submitted.
What the Court decided
Why it matters
Terms to know
No glossary terms are available for this guide.
Primary sources
Read the source materials on the official site or open the immutable repository copy used for this guide.
- 01a6d2fcc1adda024d02-r1-fe16411cd081f329.pdforal argument transcript
Guide generated September 20, 2026. Automated validation accepted this version.