Summary

SUMMARY OF ARGUMENT

This case presents the fundamental question of who, court or arbitrator, has primary responsibility to resolve issues of arbitrability. State and federal courts in New York regularly address this issue. The Court settled this question in First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (1995), stating a rule to be applied in all cases under the FAA. But when the petitioner advanced the First Options rule here, the Second Circuit expressly rejected it. This conflict with settled law warrants review and reversal of the Second Circuit.

ARGUMENT

The Second Circuit in its decision below expressly rejected, as a matter of law, this Court's rule articulated in First Options regarding the division of authority between arbitrators and courts with regard to issues of arbitrability. This direct conflict with controlling precedent on a fundamental issue of arbitration law warrants the Supreme Court's review.