Yesterday, the U.S. Supreme Court denied certiorari (No. 10-1213) to Trustmark Ins. Co. v. John Hancock Life Ins. Co., 631 F.3d 869 ( 7th Cir. 2011). The Seventh Circuit had held that an arbitration panel has authority to determine what a confidentiality agreement requires, when the agreement was closely related to an insurance arbitration that was already underway. The questions presented to the U.S. Supreme Court were:
- May a party be compelled to arbitrate a breach-of-contract claim when the contract contains no arbitration agreement (and indeed, when arbitration would make an arbitrator a judge of his own claimed breach of contract), because a different agreement between nonidentical parties contains an arbitration clause?
- Is it proper to overturn a preliminary injunction (restraining an arbitrator from sitting in judgment on his own alleged breach of a contract) on the ground that post-arbitration review under the Federal Arbitration Act would prevent irreparable harm?
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