January 17, 2019 Practice Points

SCOTUS Finds Trucker Arbitration Clauses Unenforceable

The Court issued its decision in New Prime Inc. v. Oliviera.

By Sanford Hausler

On January 15, 2019, the U.S. Supreme Court issued its decision in New Prime Inc. v. Oliviera. The case raised the issue of whether arbitration clauses contained in contracts between interstate trucking companies and drivers who were independent contractors were invalid under a provision of the Federal Arbitration Act, which excluded from its coverage contracts of employment of certain transportation workers. In a decision by Justice Gorsuch, the court unanimously found that the arbitration clauses could not be enforced. Justice Kavanaugh did not participate in this action. Justice Ginsburg issued a concurring decision.

Sanford Hausler is of counsel with Cox Padmore Skolnik & Shakarchy LLP in New York, New York.

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