First Options of Chicago. Inc. v. Kaplan

In First Options of Chicago. Inc. v. Kaplan (514 U.S. 938 [1995]), the United States Supreme Court concluded that: "Just as the arbitrability of the merits of a dispute depends upon whether the parties agreed to arbitrate that dispute, so the question 'who has the primary power to decide arbitrability' turns upon what the parties agreed about that matter. Did the parties agree to submit the arbitrability question itself to arbitration? If so, then the court's standard for reviewing the arbitrator's decision about that matter should not differ from the standard courts apply when they review any other matter that parties have agreed to arbitrate. That is to say, the court should give considerable leeway to the arbitrator, setting aside his or her decision only in certain narrow circumstances. If on the other hand, the parties did not agree to submit the arbitrability question itself to arbitration, then the court should decide that question just as it would decide any other question that the parties did not submit to arbitration, namely, independently" . The Supreme Court further outlined the process for determining whether parties agreed to arbitrate arbitrability, explaining that subject to an "important qualification" ordinary state law contract principles govern. (Id., at 944). The "important qualification" is that courts "should not assume that the parties agreed to arbitrate arbitrability unless there is 'clear and unmistakable evidence that they did so.'" (Id.)