Wednesday, May 27, 2009
Arbitration To Establish Federal Jurisdiction, Only the Complaint Counts is an interesting May 1, 2009 New York Law Journal article by Samuel Estreicher and Steven C. Bennett (registration required)
It is about a recent Supreme Court decision in Vaden v. Discover Bank, where the Court held that a federal court must "look through" a petition to compel arbitration under Section 4 of the Federal Arbitration Act to determine whether the court would have federal question jurisdiction over the underlying controversy. It is the initial federal complaint, not any defenses or counter claims that establishes federal jurisdiction.
For those interested in civil procedure, federal courts or commercial arbitration, this article is worth a read.
Mitchell H. Rubinstein