Supreme Court Holds ‘Wholly Groundless’ Exception Inconsistent with FFA

The Supreme Court reversed Fifth Circuit precedent in one of its first decisions of 2019, Henry Schein, Inc. v. Archer & White Sales, Inc. Archer sought monetary damages and injunctive relief when it sued Henry Schein for violation of federal and state antitrust laws. Schein moved to compel arbitration because the two companies signed a mandatory arbitration clause with their business agreement, expect their agreement included a clause excluding “actions seeking injunctive relief”. The Fifth Circuit denied Schein’s argument for arbitration calling it “wholly groundless” because Archer’s complaint in part sought injunctive relief. Read the details of the case and what it could mean for your arbitration agreements here.