Supreme Court of the United States

Pacificare Health Systems, Inc. v. Book

April 7, 2003538 U.S. 401

Summary

Justice Scalia delivered the opinion for a unanimous participating Court, holding that arbitration should be compelled because it was uncertain whether the agreements’ remedial limitations prohibited RICO treble damages. Until the arbitrator construed those limitations, deciding whether they rendered the agreements unenforceable would be premature. The preliminary interpretation of the limitations was not a gateway question of arbitrability requiring judicial resolution. The Court reversed and remanded without deciding the agreements’ ultimate enforceability or who should initially decide that ultimate question. There were no separate opinions. Justice Thomas did not participate.

Holding

  • Whether potentially restrictive remedial provisions justified refusing to compel arbitration of respondents’ RICO claims.. Arbitration must be compelled because the agreements did not clearly prohibit RICO treble damages, making a challenge to their enforceability premature until the arbitrator interpreted the limitations.
  • Whether the preliminary interpretation of the remedial limitations was a question of arbitrability reserved for judicial determination.. Whether these remedial limitations prohibited RICO treble damages was not a gateway question of arbitrability.

Docket 02-215

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