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Nov 3, 2014

The Eleventh Circuit Addresses Who Determines Arbitrability

In U.S. Nutraceuticals, LLC v. Cyanotech Corp., Case No. 13-12863 (decided October 30, 2014), the Eleventh Circuit addressed the issue of whether a court or an arbitrator must decide the question whether a particular dispute is subject to arbitration. The Eleventh Circuit’s reasoning in that case strongly endorses the view that the arbitrator must decide that issue. U.S. Nutraceuticals (also known as Valensa) were parties to two contracts with Cyanotech, one made in 2007 and a second made in 2010. The 2007 contract had a broad arbitration clause. The 2010 contract had a very similar arbitration clause; however, the 2010… Read more