Badgerow v. Walters | Case No. 20-1143 | Date Argued: 11/2/2021 | Date Decided: 3/31/2022

Background: This case presents a clear and intractable conflict regarding an important jurisdictional question under the Federal Arbitration Act (FAA). When parties to an arbitration seek to confirm, vacate, or modify their award under Sections 9, 10, and 11 of the FAA, those provisions do not themselves create federal jurisdiction. Instead, there must be an independent jurisdictional basis for federal courts to act. This Court has established that there is no "look through" jurisdiction under Section 10 of the FAA absent complete diversity between the parties. But the circuits are hopelessly split on whether there is "look through" jurisdiction under Section 10 for federal question cases. This case asks a straightforward question: Does the "look through" approach to federal jurisdiction apply to requests to confirm or vacate arbitration awards under Sections 9 and 10 of the FAA?

Question Presented: Whether federal courts have subject-matter jurisdiction to confirm or vacate an arbitration award under Sections 9 and 10 of the Federal Arbitration Act when the only basis for jurisdiction is that the underlying dispute involved a federal question.

Holding: Vaden’s “look-through” approach to determining federal jurisdiction does not apply to requests to confirm or vacate arbitral awards under Sections 9 and 10 of the FAA.

Result: Judgment REVERSED and case REMANDED.

Voting Breakdown: 8-1. Justice Kagan delivered the opinion of the Court, in which Chief Justice Roberts and Justices Thomas, Alito, Sotomayor, Gorsuch, Kavanaugh and Barrett joined. Justice Breyer filed a dissenting opinion.

Link to Opinion: Here.

Oral Advocates:

For Petitioner: Daniel L. Geyser, Dallas, Tex. For Respondents: Lisa S. Blatt, Washington, D.C.