No. 18-1308

KPMG, LLP v. Singing River Health System, aka Singing River Hospital System

Lower Court: Mississippi
Docketed: 2019-04-16
Status: Denied
Type: Paid
Tags: arbitrability arbitrability-question arbitrability-questions arbitration-agreement contract-enforceability contract-formation delegation-clause federal-arbitration-act preemption state-law-challenge state-law-contract-challenge
Key Terms:
Arbitration Privacy
Latest Conference: 2019-10-01
Question Presented (AI Summary)

Whether the Federal Arbitration Act prohibits courts from relabeling a state law contract challenge as relating to contract formation, as opposed to enforceability, thereby nullifying the parties' delegation of questions of arbitrability to an arbitrator

Question Presented (from Petition)

QUESTIONS PRESENTED Under the Federal Arbitration Act (FAA), arbitration agreements “shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” 9 U.S.C. § 2. The FAA “preempts any state rule discriminating on its face against arbitration” and “displaces any rule that covertly accomplishes the same objective by disfavoring contracts that (oh so coincidentally) have the defining features of arbitration agreements.” Kindred Nursing Ctrs. Ltd. P’ship v. Clark, 1378. Ct. 1421, 1426 (2017). “When the parties’ contract delegates the arbitrability question to an arbitrator, the courts must respect the parties’ decision as embodied in the contract.” Henry Schein, Inc. v. Archer & White Sales, Inc., 1389 S. Ct. 524, 531 (2019). The Supreme Court of Mississippi here refused—twice—to require arbitration pursuant to the parties’ arbitration agreements in related cases arising from the same contracts. In the first, it applied a judicially-created state contract rule to find that the contracts between the parties were unenforceable, despite a delegation clause referring enforceability questions to the arbitrators. Eighty-four days later, post-Henry Schein, the same court ruled in the second case that the same contracts, on the same facts and based on the same rule, were never formed in the first place, even though written contracts were negotiated, signed, performed, paid, and ultimately sued upon. The questions presented are: 1. Whether the Federal Arbitration Act prohibits courts from relabeling a state law contract il challenge as relating to contract formation, as opposed to enforceability, thereby nullifying the parties’ delegation of questions of arbitrability to an arbitrator. 2. Whether the Federal Arbitration Act permits courts to determine that the making of an arbitration agreement is at issue where plaintiffs’ claims depend upon the existence of a contract that delegates gateway issues of arbitrability to the arbitrator.

Docket Entries

2019-10-07
Petition DENIED.
2019-07-17
DISTRIBUTED for Conference of 10/1/2019.
2019-07-15
Reply of petitioner KPMG LLP filed.
2019-07-01
Brief of respondent Singing River Health System, aka Singing River Hospital System in opposition filed.
2019-06-28
Affidavit of Compliance filed with respect to brief in opposition of respondent Jackson County, Mississippi.
2019-06-28
Affidavit of Service filed with respect to brief in opposition of respondent Jackson County, Mississippi.
2019-06-27
Brief of respondent Jackson County, Mississippi in opposition filed.
2019-04-25
The motions to extend the time to file responses are granted and the time is extended to and including July 1, 2019, for all respondents.
2019-04-23
Motion to extend the time to file a response from May 16, 2019 to June 30, 2019, submitted to The Clerk.
2019-04-18
Motion to extend the time to file a response from May 16, 2019 to June 30, 2019, submitted to The Clerk.
2019-04-10
Petition for a writ of certiorari filed. (Response due May 16, 2019)

Attorneys

Jackson County, Mississippi
William Lee Guice IIIRushing & Guice, P.L.L.C., Respondent
William Lee Guice IIIRushing & Guice, P.L.L.C., Respondent
KPMG LLP
Amelia Toy RudolphEversheds Sutherland (US) LLP, Petitioner
Amelia Toy RudolphEversheds Sutherland (US) LLP, Petitioner
Singing River Health System, aka Singing River Hospital System
Edward Coleman TaylorDaniel Coker Horton & Bell, PA, Respondent
Edward Coleman TaylorDaniel Coker Horton & Bell, PA, Respondent