(The Center Square) – The U.S. Supreme Court, in a unanimous decision on Thursday, ruled that a lower court can determine an arbitration award in an employment discrimination case.
The case, Jules v. Andre Balazs Properties, focuses on Adrian Jules, an employee of a hotel operated by Balazs. The Cheateau Marmont Hotel in Los Angeles ended Jules’ employment in March 2020, citing staffing issues due to the COVID-19 pandemic. Jules filed a lawsuit in federal court against Balazs alleging employment discrimination.
The case was sent to arbitration, where an impartial third-party reviewed the dispute instead of going to court. The federal court did not dismiss the case, but instead waited on a decision pending the arbitration agreement.
The arbiter ruled against Jules and awarded Balasz $34,500 in sanctions. The federal court affirmed the award and dismissed further claims against Jules.
However, Jules argued that the federal court could not affirm the award. He said the case did not belong in federal court even though the issues he brought were considered federal jurisdiction.
Justices on the court unanimously disagreed. Justice Sonia Sotomayor, in the court’s majority opinion, said Jules’ arguments did not hold up.
“Federal courts have the power to incorporate private settlements into orders of the court when resolving claims that are the subject of those settlements,” Sotomayor wrote.
Sotomayor argued that the Federal Arbitration Act, which authorizes a federal court to assist in affirming and arbitration agreement, allowed the court to rule on the decision.
“Because those claims were sufficient to establish the District Court’s jurisdiction in this case, they also established the District Court’s authority to resolve the motions to confirm or vacate the arbitral award resolving those claims,” Sotomayor wrote.
