Arbitrators Determine Challenge to Contract as a Whole - Not Court

In Tracfone Wireless, Inc. v. Blue Ocean's Distributing, LLC, 616 F. Supp. 2d 1284 (S.D. Fla. 2009), Judge Ungaro held:

1.) The district court's retain jurisdiction over an action when they stay the case pending arbitration; and

2.) The arbitrators, and not the court, determine challenges to the validity of a contract as a whole. If the challenge was specifically to the arbitration clause, the court would determine the challenge. Judge Ungaro stated: "The Supreme Court has stated that, 'a challenge to the validity of the contract as a whole, and not specifically to the arbitration clause, must go to the arbitrator." (internal citations omitted).

The decision is below:

Tracfone Wireless, Inc. v. Blue Ocean's Distributing, LLC, 616 F. Supp. 2d 1284 (S.D. Fla. 2009)

*Disclaimer: Jeffrey Kuntz and/or GrayRobinson, P.A. were involved in the above-referenced action.