Henry Schein Inc. v. Archer and White Sales Inc.
The Facts
Archer and White Sales sued Henry Schein Inc. and others for antitrust violations. The arbitration agreement between the parties delegated questions of arbitrability to the arbitrator. Schein moved to compel arbitration. The Fifth Circuit refused, applying its own wholly-groundless exception that allowed courts to bypass delegation clauses when the argument for arbitrability was obviously frivolous. The Supreme Court reversed, finding no textual support for the exception in the Federal Arbitration Act.
The Application
The Fifth Circuit's wholly-groundless exception allowed courts to bypass the parties' delegation clause by deeming the antitrust arbitrability argument too frivolous to warrant arbitrator review. The Supreme Court rejected this approach, finding no textual basis in the FAA for carving out exceptions to delegation clauses, regardless of how weak the underlying arbitrability argument appeared. By enforcing the clause as written, the Court held that Schein's motion to compel arbitration must proceed to the arbitrator, who would decide whether the antitrust claims were arbitrable - the very threshold question the parties had delegated. This eliminates judicial gatekeeping power over delegation clauses and ensures that arbitrators control threshold questions of arbitrability when the parties have so agreed.
The Conclusion
**The ruling eliminates judicial power to second-guess arbitrability arguments by invoking a wholly-groundless exception.** Parties who include delegation clauses in arbitration agreements can be confident that courts will refer threshold arbitrability questions to the arbitrator as agreed. The decision strengthens the enforceability of arbitration delegation provisions.
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Case Analysis
Overview
The Supreme Court held 9-0 that courts have no power to override arbitration agreements' delegation clauses on the ground that the underlying arbitration claim is wholly groundless. Justice Thomas wrote for the Court, requiring courts to enforce delegation clauses as written and send threshold arbitrability questions to the arbitrator.
Facts
Archer and White Sales sued Henry Schein Inc. and others for antitrust violations. The arbitration agreement between the parties delegated questions of arbitrability to the arbitrator. Schein moved to compel arbitration. The Fifth Circuit refused, applying its own wholly-groundless exception that allowed courts to bypass delegation clauses when the argument for arbitrability was obviously frivolous. The Supreme Court reversed, finding no textual support for the exception in the Federal Arbitration Act.
Issue
Whether a court may refuse to enforce a delegation clause in an arbitration agreement on the ground that the argument for arbitrability is wholly groundless, even when the parties' agreement delegates that question to the arbitrator.
Rule
The Federal Arbitration Act requires courts to enforce arbitration agreements according to their terms. When parties agree to delegate threshold arbitrability questions to an arbitrator, courts must refer those questions to the arbitrator, not resolve them independently.
Analysis
The Fifth Circuit's wholly-groundless exception allowed courts to bypass the parties' delegation clause by deeming the antitrust arbitrability argument too frivolous to warrant arbitrator review. The Supreme Court rejected this approach, finding no textual basis in the FAA for carving out exceptions to delegation clauses, regardless of how weak the underlying arbitrability argument appeared. By enforcing the clause as written, the Court held that Schein's motion to compel arbitration must proceed to the arbitrator, who would decide whether the antitrust claims were arbitrable. The very threshold question the parties had delegated. This eliminates judicial gatekeeping power over delegation clauses and ensures that arbitrators control threshold questions of arbitrability when the parties have so agreed.
Conclusion
**The ruling eliminates judicial power to second-guess arbitrability arguments by invoking a wholly-groundless exception.** Parties who include delegation clauses in arbitration agreements can be confident that courts will refer threshold arbitrability questions to the arbitrator as agreed. The decision strengthens the enforceability of arbitration delegation provisions.
Notes
OT2020. Added via SCOTUS bulk import 2026-05-14
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