Tennessee Business Litigation

A unanimous Supreme Court held May 23 that a party’s waiver of its arbitration right does not require showing prejudice to an opposing party, because the Federal Arbitration Act (“FAA”) prohibits arbitration-specific rules.

Franchisor Sundance litigated employee Morgan’s collective wage and hour claim for eight months before moving to compel arbitration. The courts below applied the majority rule and rejected Morgan’s waiver argument because she showed inadequate prejudice from Sundance’s delay.

The Supreme Court reversed and remanded. The Court assumed ...