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
Petitioner argues that arbitration under the Federal Arbitration Act is a matter of consent, not coercion.
The dispute concerns whether an arbitrator exceeded his authority by certifying a class‑wide arbitration under the Federal Arbitration Act.
Respondent contends that the arbitrator lacks authority to decide the rights of unnamed third parties and that the class action was unauthorized.
Background and question before the Court
Justice O'Connor asked whether the contract should be interpreted according to the law of the state with jurisdiction.
A Justice asked, "Why?"
Justice Scalia asked which doctrine of state contract law led to the result, referencing the contra proferentem rule.
What each side argues
Petitioner (Green Tree Financial Corp.)
According to Petitioner, petitioner asserts that arbitration under the Federal Arbitration Act is based on consent, not coercion.
Petitioner argues that the arbitrator exceeded his authority by certifying a class‑wide arbitration, contrary to the parties' consent.
According to Ms. Pillard, petitioner says the South Carolina Supreme Court applied a rule of construction against the drafter without any contractual or statutory directive.
Respondent (Lynn W. Bazzle, etc.)
According to Mr. Phillips, respondent argues that the arbitrator does not have authority to resolve the rights of unnamed third parties; that is a question for the court.
According to Carter G. Phillips, respondent states that neither Green Tree nor any of the unnamed class members consented to have the arbitrator arbitrate their claims.
What happened at oral argument
The case was heard at oral argument before the Supreme Court at 10:10 a.m.
After argument, 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.
- 953cf04a4346daf3b5a3-r1-77a3e8fe3a92be4e.pdforal argument transcript
Guide generated September 20, 2026. Automated validation accepted this version.