Rent-A-Center, West, Inc. v. Jackson

561 U.S. 63, 130 S. Ct. 2772 (2010)

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Rent-A-Center, West, Inc. v. Jackson

United States Supreme Court
561 U.S. 63, 130 S. Ct. 2772 (2010)

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Facts

When Antonio Jackson (plaintiff) was hired by Rent-A-Center, West, Inc. (Rent-A-Center) (defendant), Jackson was required to sign an arbitration agreement. It stated that all disputes arising out of Jackson’s employment were to be resolved by arbitration. It also contained a delegation provision stating that an arbitrator, as opposed to a court, would decide any disputes regarding the agreement’s applicability and enforceability. After Jackson’s employment ended, Jackson filed an employment-discrimination suit against Rent-A-Center in federal district court. Relying on the Federal Arbitration Act (FAA), Rent-A-Center moved to dismiss the court proceeding and compel arbitration. Jackson opposed, arguing that the arbitration agreement was unconscionable and therefore unenforceable. Rent-A-Center countered that the court lacked authority to decide the conscionability issue because of the delegation provision. The district court granted Rent-A-Center’s motion, compelling arbitration on the basis that the agreement expressly called for an arbitrator to decide challenges to the agreement’s enforceability. The court of appeals reversed, and the United States Supreme Court granted certiorari.

Rule of Law

Issue

Holding and Reasoning (Scalia, J.)

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