first options chicago kaplan argued march decided may case arose disputes centered workout agreement embodied four documents governs working debts owed respondents manuel kaplan wife wholly owned investment company mk investments mki petitioner first options chicago firm clears stock trades philadelphia stock exchange first options demands payment went unsatisfied sought arbitration stock exchange panel mki signed workout document containing arbitration agreement submitted arbitration kaplans signed document filed objections panel denying disagreement first options arbitrable arbitrators decided power rule dispute merits ruled first options favor district confirmed award appeals reversed finding dispute arbitrable appeals said courts independently decide whether arbitration panel jurisdiction dispute apply ordinary standards review considering district denial respondents motion vacate arbitration award held arbitrability options dispute subject independent review courts pp answer narrow question whether arbitrators courts primary power decide whether parties agreed arbitrate dispute merits fairly simple arbitrability merits dispute depends upon whether page ii parties agreed arbitrate dispute see mastrobuono shearson lehman hutton question primary power decide arbitrability turns upon whether parties agreed submit question arbitration defer arbitrator arbitrability decision decide question independently two answers flow inexorably fact arbitration simply matter contract parties pp kaplans agree arbitrate arbitrability courts generally apply ordinary principles governing contract formation deciding whether agreement exists however courts assume parties agreed arbitrate arbitrability unless clea unmistakabl evidence see technologies communications workers first options show clear agreement part kaplans kaplans objections arbitrators jurisdiction indicate want arbitrators binding authority conclusion supported obvious explanation presence arbitrators kaplan wholly owned firm arbitrating workout agreement matters third circuit law suggested might argue arbitrability arbitrators without losing right independent review first options counterarguments unpersuasive pp courts appeals apply ordinary standards reviewing district decisions upholding arbitration awards accepting findings fact clearly erroneous deciding questions law de novo circumstances apply special abuse discretion standard undesirable make law complicated proliferating special review standards without good reason importantly appeals reviewing attitude toward district decision depend upon respective institutional advantages trial appellate courts upon standard review likely produce particular substantive result nothing arbitration act supports first options claim appeals use different standard conducting review certain district decisions pp factbound question whether appeals erred ultimate conclusion dispute arbitrable beyond scope questions agreed review affirmed breyer delivered opinion unanimous first options chicago kaplan justice breyer delivered opinion case consider two questions courts review certain matters federal arbitration act et seq ed supp district review arbitrator decision parties agreed arbitrate dispute appeals review district decision confirming refusing vacate arbitration award case concerns several related disputes one side first options chicago firm clears stock trades philadelphia stock exchange side three parties manuel kaplan wife carol kaplan wholly owned investment company mk investments mki whose trading account first options cleared disputes center around workout agreement embodied four separate documents governs working debts first options mki kaplans incurred result october stock market crash entering agreement mki lost additional million first options took first options chicago kaplan control liquidated certain mki assets demanded immediate payment entire mki debt insisted kaplans personally pay deficiency demands went unsatisfied first options sought arbitration panel philadelphia stock exchange mki signed workout document four contained arbitration clause accepted arbitration kaplans however personally signed document denied disagreement first options arbitrable filed written objections effect arbitration panel arbitrators decided power rule merits parties dispute favor first options kaplans asked federal district vacate arbitration award see supp first options requested confirmation see confirmed award nonetheless appeal appeals third circuit agreed kaplans dispute arbitrable reversed district confirmation award granted certiorari consider two questions regarding standards appeals used review determination kaplans dispute first options arbitrable first appeals said courts independently decide whether arbitration panel jurisdiction merits particular dispute emphasis added first options asked us decide whether whether courts reviewing arbitrators decision arbitrability apply de novo standard review deferential standard applied arbitrators decisions merits objecting party submitted issue arbitrators decision first options chicago kaplan pet cert second appeals stated review district denial motion vacate commercial arbitration award correlative grant motion confirm de novo first options argues appeals instead applied abuse discretion standard see robbins day ii first question standard review applied arbitrator decision arbitrability narrow one understand narrow consider three types disagreement present case first kaplans first options disagree whether kaplans personally liable mki debt first options disagreement makes merits dispute second disagree whether agreed arbitrate merits disagreement arbitrability dispute third disagree primary power decide second matter power belong primarily arbitrators reviews arbitrability decision deferentially makes mind arbitrability independently consider third question although question narrow one certain practical importance party agreed arbitrate normally right decision merits dispute say obligation contract party agreed arbitrate effect relinquished much right practical value party still ask review arbitrator decision set decision aside unusual circumstances see first options chicago kaplan award procured corruption fraud undue means arbitrator exceeded powers wilko swan parties bound arbitrator decision manifest disregard law overruled grounds rodriguez de quijas express hence arbitrator primary authority decide whether party agreed arbitrate make critical difference party resisting arbitration believe answer question question fairly simple arbitrability merits dispute depends upon whether parties agreed arbitrate dispute see mastrobuono shearson lehman hutton slip mitsubishi motors soler question primary power decide arbitrability turns upon parties agreed matter parties agree submit arbitrability question arbitration standard reviewing arbitrator decision matter differ standard courts apply review matter parties agreed arbitrate see technologies communications workers parties may agree arbitrate arbitrability steelworkers warrior gulf navigation say give considerable leeway arbitrator setting aside decision certain narrow circumstances see hand parties agree submit arbitrability question arbitration decide question decide question parties submit arbitration namely independently two first options chicago kaplan answers flow inexorably fact arbitration simply matter contract parties way resolve disputes disputes parties agreed submit arbitration see technologies supra mastrobuono supra slip terminix dobson slip mitsubishi motors supra agree first options therefore must defer arbitrator arbitrability decision parties submitted matter arbitration nevertheless conclusion help first options win case fair complete answer question requires word decide whether parties agreed submit arbitrability issue arbitration word makes clear kaplans agree arbitrate arbitrability deciding whether parties agreed arbitrate certain matter including arbitrability courts generally though qualification discuss apply ordinary principles govern formation contracts see mastrobuono supra slip volt information sciences board trustees leland stanford junior perry thomas wilner domke commercial arbitration rev ed supp hereinafter domke relevant state law example require see whether parties objectively revealed intent submit arbitrability issue arbitration see estate jesmer rohlev app law state whose law governs workout agreement burkett allstate ins first options chicago kaplan law state kaplans objected arbitrability see generally mitsubishi motors supra however said added important qualification applicable courts decide whether party agreed arbitrators decide arbitrability courts assume parties agreed arbitrate arbitrability unless clea unmistakabl evidence technologies supra see warrior gulf supra manner law treats silence ambiguity question primarily decide arbitrability differently way treats silence ambiguity question whether particular dispute arbitrable within scope valid arbitration agreement respect latter question law reverses presumption see mitsubishi motors supra ny doubts concerning scope arbitrable issues resolved favor arbitration quoting moses cone memorial hospital mercury constr warrior gulf supra difference treatment understandable latter question arises parties contract provides arbitration issues circumstances parties likely gave least thought scope arbitration given law permissive policies respect arbitration see mitsubishi motors supra one understand law insist upon clarity concluding parties want arbitrate related matter see domke issues deemed arbitrable unless clear arbitration clause included hand former question primarily decide arbitrability question rather arcane party often might focus first options chicago kaplan upon question upon significance arbitrators decide scope powers cf cox reflections upon labor arbitration harv rev cited warrior gulf given principle party forced arbitrate issues specifically agreed submit arbitration one understand courts might hesitate interpret silence ambiguity decide arbitrability point giving arbitrators power might often force unwilling parties arbitrate matter reasonably thought judge arbitrator decide ibid see generally dean witter reynolds byrd arbitration act basic purpose ensure judicial enforcement privately made agreements arbitrate record us first options show kaplans clearly agreed arbitrators decide arbitrate question arbitrability first options relies kaplans filing arbitrators written memorandum objecting arbitrators jurisdiction merely arguing arbitrability issue arbitrator indicate clear willingness arbitrate issue willingness effectively bound arbitrator decision point contrary insofar kaplans forcefully objecting arbitrators deciding dispute first options one naturally think want arbitrators binding authority conclusion draws added support obvious explanation kaplans presence arbitrators mki kaplan wholly owned firm arbitrating workout agreement matters third circuit law suggested kaplans might argue arbitrability arbitrators without losing right independent first options chicago kaplan review teamsters western pennsylvania motor carriers see first options makes several counterarguments kaplans ways get independent decision question arbitrability without arguing issue arbitrators trying enjoin arbitration refusing participate arbitration defending petition first options brought compel arbitration see permitting parties argue arbitrability arbitrator without bound result cause delay waste resolution disputes arbitration act therefore requires presumption kaplans agreed bound arbitrators decision contrary first points however true simply say anything whether kaplans intended bound arbitrators decision second point inconclusive factual circumstances vary greatly permit confident conclusion whether allowing arbitrator make initial independently reviewable arbitrability determination general slow dispute resolution process third point legally erroneous strong policy favoring first options respect particular argument basic objective area resolve disputes quickest manner possible matter parties wishes dean witter reynolds supra ensure commercial arbitration agreements like contracts enforced according terms mastrobuono slip quoting volt information sciences according intentions parties mitsubishi motors first options chicago kaplan see slip policy favors kaplans first options conclude kaplans clearly agree submit question arbitrability arbitration appeals correct finding arbitrability options dispute subject independent review courts iii turn next standard appeals apply reviewing district decision refuses vacate see supp confirms see arbitration award although third circuit sometimes used words de novo describe standard opinion makes clear simply believes circuits one special standard governing review district decision circumstances rather review example district decision confirming arbitration award ground parties agreed submit dispute arbitration proceed like review district decision finding agreement parties accepting findings fact clearly erroneous deciding questions law de novo see one appeals eleventh circuit said something different federal policy favoring arbitration says applies specially lenient abuse discretion standard even questions law reviewing district decisions confirm set aside arbitration awards see robbins day first options asks us hold eleventh circuit view correct believe however majority circuits right saying courts appeals apply first options chicago kaplan ordinary special standards reviewing district decisions upholding arbitration awards one thing undesirable make law complicated proliferating review standards without good reasons importantly reviewing attitude appeals takes toward district decision depend upon respective institutional advantages trial appellate courts upon standard review likely produce particular substantive result salve regina college russell law example tells courts trial appellate give administrative agencies degree legal leeway review certain interpretations law agencies made see chevron natural resources defense council one knowledge suggested policy giving leeway agencies means appeals give extra leeway district decision upholds agency similarly courts grant arbitrators considerable leeway reviewing arbitration decisions fact mean appellate courts give extra leeway district courts uphold arbitrators first options argues arbitration act special act one section allows courts appeals conduct interlocutory review certain antiarbitration district rulings orders enjoining arbitrations upholding arbitration orders refusing enjoin arbitrations supp portion act governs timing review therefore weak support distinct claim appeals use different standard reviewing certain district decisions act says nothing standards review first options chicago kaplan conclude appeals used proper standards reviewing district arbitrability determinations iv finally first options argues even rule questions nonetheless hold appeals erred ultimate conclusion merits options dispute arbitrable factbound issue beyond scope questions agreed review judgment appeals affirmed ordered page