Court Sends Question of Arbitrability to Arbitrators

“Questions of arbitrability” cover the scope of a dispute and address whether “parties are bound by a given arbitration clause,” and if an agreement to arbitrate “applies to a particular controversy.” The question of whether a matter is required to be arbitrated or whether a party is obligated to arbitrate a dispute, “is generally an issue for judicial determination.” However, “when the parties’ agreement specifically incorporates by reference the rules of” the arbitration panel and states that “all disputes” are to be decided by arbitration, “courts will leave the question of arbitrability to the arbitrators.” In this case, AAA was the denominated panel, and the parties’ agreement provided that any controversy or claim arising out of or relative to the agreement was to be submitted to the AAA. As such, the court determined that the questions or “issues of arbitrability” were for the arbitrators to decide.

Bromberg & Liebowitz v O’Brien