Long: The U.S. Supreme Court Limits Federal Court’s Jurisdiction Over Confirming and Vacating Arbitration Awards

Many energy transaction contracts contain arbitration clauses to force disputes outside of the court system. Under the Federal Arbitration Act (FAA), 9 U.S.C. § 1 et seq., a party to an arbitration agreement is able to seek various forms of assistance from a federal court. For example, Section 4 authorizes a party to ask the court to compel an arbitration proceeding. Additionally, Sections 9 and 10 authorize a party to apply to the court to confirm or vacate an arbitral award.

On March 31, 2022, in Badgerow v. Walters, the U.S. Supreme Court held the Federal Arbitration Act does not entitle federal courts to “look through” the underlying dispute for a federal question that would establish jurisdiction to confirm or vacate an arbitral award.

Read the full article at Institute for Energy Law's Oil & Gas E-Report (page 30) >>