Litigation & Arbitration,
Civil Litigation,
9th U.S. Circuit Court of Appeals
Sep. 17, 2021
Arbitrator can decide if loan contract provision is enforceable, split panel says
Instead of allowing a court to decide, the contract said an arbitrator would make the call. Moreover, the arbitrator must apply tribal law, if that is what the contract calls for.
In a significant break with other federal circuits, a divided 9th U.S. Circuit Court of Appeals ruled Thursday that an arbitrator can decide whether an arbitration provision in a loan contract is enforceable.
Instead of allowing a court to decide, the contract said an arbitrator would make the call. Moreover, the arbitrator must apply tribal law, if that is what the contract calls for.
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