Originally from Alternatives to the High Cost of Litigation

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The U.S. Supreme Court is set to hear oral argument in Morgan v. Sundance Inc., No. 21-328 (the Court’s docket page is available at https://bit.ly/3ERZkUL).

The case concerns the appropriate standard for determining whether a party to a dispute waived its right to compel arbitration pursuant to a contractual arbitration provision.

The specific question is whether a party waives its right to enforce an arbitration provision when it acts inconsistently with its obligation to arbitrate—say, by litigating for months (or even years) before moving to compel arbitration, or whether a party can still enforce the arbitration clause even where it acts inconsistently with its obligation to arbitrate as long as the opposing party does not suffer prejudice.