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- Subject: 90-18 -- OPINION, GILMER v. INTERSTATE/JOHNSON LANE CORP.
-
-
-
-
- NOTICE: This opinion is subject to formal revision before publication in
- the preliminary print of the United States Reports. Readers are requested
- to notify the Reporter of Decisions, Supreme Court of the United States,
- Washington, D. C. 20543, of any typographical or other formal errors, in
- order that corrections may be made before the preliminary print goes to
- press.
-
- SUPREME COURT OF THE UNITED STATES
-
-
- No. 90-18
-
-
-
- ROBERT D. GILMER, PETITIONER v. INTERSTATE/ JOHNSON LANE CORPORATION
-
- on writ of certiorari to the united states court of appeals for the fourth
- circuit
-
- [May 13, 1991]
-
-
-
- Justice White delivered the opinion of the Court.
-
- The question presented in this case is whether a claim under the Age
- Discrimination in Employment Act of 1967 (ADEA), 81 Stat. 602, as amended,
- 29 U. S. C. MDRV 621 et seq., can be subjected to compulsory arbitration
- pursuant to an arbitration agreement in a securities registration
- application. The Court of Appeals held that it could, 895 F. 2d 195 (CA4
- 1990), and we affirm.
-
- I
-
-
- Respondent Interstate/Johnson Lane Corporation (Interstate) hired
- petitioner Robert Gilmer as a Manager of Financial Services in May 1981.
- As required by his employment, Gilmer registered as a securities
- representative with several stock exchanges, including the New York Stock
- Exchange (NYSE). See App. 15-18. His registration application, entitled
- "Uniform Application for Securities Industry Registration or Transfer,"
- provided, among other things, that Gilmer "agree[d] to arbitrate any
- dispute, claim or controversy" arising between him and Interstate "that is
- required to be arbitrated under the rules, constitutions or by-laws of the
- organizations with which I register." Id., at 18. Of relevance to this
- case, NYSE Rule 347 provides for arbitration of "[a]ny controversy between
- a registered representative and any member or member organization arising
- out of the employment or termination of employment of such registered
- representative." App. to Brief for Respondent 1.
- Interstate terminated Gilmer's employment in 1987, at which time Gilmer
- was 62 years of age. After first filing an age discrimination charge with
- the Equal Employment Opportunity Commission (EEOC), Gilmer subsequently
- brought suit in the United States District Court for the Western District
- of North Carolina, alleging that Interstate had discharged him because of
- his age, in violation of the ADEA. In response to Gilmer's complaint,
- Interstate filed in the District Court a motion to compel arbitration of
- the ADEA claim. In its motion, Interstate relied upon the arbitration
- agreement in Gilmer's registration application, as well as the Federal
- Arbitration Act (FAA), 9 U. S. C. MDRV 1 et seq. The District Court denied
- Interstate's motion, based on this Court's decision in Alexander v.
- Gardner-Denver Co., 415 U. S. 36 (1974), and because it concluded that
- "Congress intended to protect ADEA claimants from the waiver of a judicial
- forum." App. 87. The United States Court of Appeals for the Fourth
- Circuit reversed, finding "nothing in the text, legislative history, or
- underlying purposes of the ADEA indicating a congressional intent to
- preclude enforcement of arbitration agreements." 895 F. 2d, at 197. We
- granted certiorari, 498 U. S. --- (1990), to resolve a conflict among the
- Courts of Appeals regarding the arbitrability of ADEA claims. {1}
-
- II
-
-
- The FAA was originally enacted in 1925, 43 Stat. 883, and then
- reenacted and codified in 1947 as Title 9 of the United States Code. Its
- purpose was to reverse the longstanding judicial hostility to arbitration
- agreements that had existed at English common law and had been adopted by
- American courts, and to place arbitration agreements upon the same footing
- as other contracts. Dean Witter Reynolds Inc. v. Byrd, 470 U. S. 213,
- 219-220, and n. 6 (1985); Scherk v. Alberto-Culver Co., 417 U. S. 506, 510,
- n. 4 (1974). Its primary substantive provision states that "[a] written
- provision in any maritime transaction or a contract evidencing a
- transaction involving commerce to settle by arbitration a controversy
- thereafter arising out of such contract or transaction . . . shall be
- valid, irrevocable, and enforceable, save upon such grounds as exist at law
- or in equity for the revocation of any contract." 9 U. S. C. MDRV 2. The
- FAA also provides for stays of proceedings in federal district courts when
- an issue in the proceeding is referable to arbitration, MDRV 3, and for
- orders compelling arbitration when one party has failed, neglected, or
- refused to comply with an arbitration agreement, MDRV 4. These provisions
- manifest a "liberal federal policy favoring arbitration agreements." Moses
- H. Cone Memorial Hospital v. Mercury Construction Corp., 460 U. S. 1, 24
- (1983). {2}
- It is by now clear that statutory claims may be the subject of an
- arbitration agreement, enforceable pursuant to the FAA. Indeed, in recent
- years we have held enforceable arbitration agreements relating to claims
- arising under the Sherman Act, 15 U. S. C. 15 1-7; MDRV 10(b) of the
- Securities Exchange Act of 1934, 15 U. S. C. MDRV 78j(b); the civil
- provisions of the Racketeer Influenced and Corrupt Organizations Act
- (RICO), 18 U. S. C. MDRV 1961 et seq.; and MDRV 12(2) of the Securities Act
- of 1933, 15 U. S. C. MDRV 77l(2). See Mitsubishi Motors Corp. v. Soler
- Chrysler-Plymouth, Inc., 473 U. S. 614 (1985); Shearson/American Express
- Inc. v. McMahon, 482 U. S. 220 (1987); Rodriguez de Quijas v.
- Shearson/American Express, Inc., 490 U. S. 477 (1989). In these cases we
- recognized that "[b]y agreeing to arbitrate a statutory claim, a party does
- not forgo the substantive rights afforded by the statute; it only submits
- to their resolution in an arbitral, rather than a judicial, forum."
- Mitsubishi, supra, at 628.
- Although all statutory claims may not be appropriate for arbitration,
- "[h]aving made the bargain to arbitrate, the party should be held to it
- unless Congress itself has evinced an intention to preclude a waiver of
- judicial remedies for the statutory rights at issue." Ibid. In this
- regard, we note that the burden is on Gilmer to show that Congress intended
- to preclude a waiver of a judicial forum for ADEA claims. See McMahon, 482
- U. S., at 227. If such an intention exists, it will be discoverable in the
- text of the ADEA, its legislative history, or an "inherent conflict"
- between arbitration and the ADEA's underlying purposes. See ibid.
- Throughout such an inquiry, it should be kept in mind that "questions of
- arbitrability must be addressed with a healthy regard for the federal
- policy favoring arbitration." Moses H. Cone, 460 U. S., at 24.
- III
- Gilmer concedes that nothing in the text of the ADEA or its legislative
- history explicitly precludes arbitration. He argues, however, that
- compulsory arbitration of ADEA claims pursuant to arbitration agreements
- would be inconsistent with the statutory framework and purposes of the
- ADEA. Like the Court of Appeals, we disagree.
- A
- Congress enacted the ADEA in 1967 "to promote employment of older
- persons based on their ability rather than age; to prohibit arbitrary age
- discrimination in employment; [and] to help employers and workers find ways
- of meeting problems arising from the impact of age on employment." 29 U.
- S. C. MDRV 621(b). To achieve those goals, the ADEA, among other things,
- makes it unlawful for an employer "to fail or refuse to hire or to
- discharge any individual or otherwise discriminate against any individual
- with respect to his compensation, terms, conditions, or privileges of
- employment, because of such individual's age." MDRV 623(a)(1). This
- proscription is enforced both by private suits and by the EEOC. In order
- for an aggrieved individual to bring suit under the ADEA, he or she must
- first file a charge with the EEOC and then wait at least 60 days. MDRV
- 626(d). An individual's right to sue is extinguished, however, if the EEOC
- institutes an action against the employer. MDRV 626(c)(1). Before the
- EEOC can bring such an action, though, it must "attempt to eliminate the
- discriminatory practice or practices alleged, and to effect voluntary
- compliance with the requirements of this chapter through informal methods
- of conciliation, conference, and persuasion." MDRV 626(b); see also 29 CFR
- MDRV 1626.15 (1990).
- As Gilmer contends, the ADEA is designed not only to address individual
- grievances, but also to further important social policies. See, e. g.,
- EEOC v. Wyoming, 460 U. S. 226, 231 (1983). We do not perceive any
- inherent inconsistency between those policies, however, and enforcing
- agreements to arbitrate age discrimination claims. It is true that
- arbitration focuses on specific disputes between the parties involved. The
- same can be said, however, of judicial resolution of claims. Both of these
- dispute resolution mechanisms nevertheless also can further broader social
- purposes. The Sherman Act, the Securities Exchange Act of 1934, RICO, and
- the Securities Act of 1933 all are designed to advance important public
- policies, but, as noted above, claims under those statutes are appropriate
- for arbitration. "[S]o long as the prospective litigant effectively may
- vindicate [his or her] statutory cause of action in the arbitral forum, the
- statute will continue to serve both its remedial and deterrent function."
- Mitsubishi, supra, at 637.
- We also are unpersuaded by the argument that arbitration will undermine
- the role of the EEOC in enforcing the ADEA. An individual ADEA claimant
- subject to an arbitration agreement will still be free to file a charge
- with the EEOC, even though the claimant is not able to institute a private
- judicial action. Indeed, Gilmer filed a charge with the EEOC in this case.
- In any event, the EEOC's role in combating age discrimination is not
- dependent on the filing of a charge; the agency may receive information
- concerning alleged violations of the ADEA "from any source," and it has
- independent authority to investigate age discrimination. See 29 CFR 15
- 1626.4, 1626.13 (1990). Moreover, nothing in the ADEA indicates that
- Congress intended that the EEOC be involved in all employment disputes.
- Such disputes can be settled, for example, without any EEOC involvement.
- See, e. g., Coventry v. United States Steel Corp., 856 F. 2d 514, 522 (CA3
- 1988); Moore v. McGraw Edison Co., 804 F. 2d 1026, 1033 (CA8 1986); Runyon
- v. National Cash Register Corp., 787 F. 2d 1039, 1045 (CA6), cert. denied,
- 479 U. S. 850 (1986). {3} Finally, the mere involvement of an
- administrative agency in the enforcement of a statute is not sufficient to
- preclude arbitration. For example, the Securities Exchange Commission is
- heavily involved in the enforcement of the Securities Exchange Act of 1934
- and the Securities Act of 1933, but we have held that claims under both of
- those statutes may be subject to compulsory arbitration. See McMahon;
- Rodriguez de Quijas.
- Gilmer also argues that compulsory arbitration is improper because it
- deprives claimants of the judicial forum provided for by the ADEA.
- Congress, however, did not explicitly preclude arbitration or other
- nonjudicial resolution of claims, even in its recent amendments to the
- ADEA. "[I]f Congress intended the substantive protection afforded [by the
- ADEA] to include protection against waiver of the right to a judicial
- forum, that intention will be deducible from text or legislative history."
- Mitsubishi, 473 U. S., at 628. Moreover, Gilmer's argument ignores the
- ADEA's flexible approach to resolution of claims. The EEOC, for example,
- is directed to pursue "informal methods of conciliation, conference, and
- persuasion," 29 U. S. C. MDRV 626(b), which suggests that out-ofcourt
- dispute resolution, such as arbitration, is consistent with the statutory
- scheme established by Congress. In addition, arbitration is consistent
- with Congress' grant of concurrent jurisdiction over ADEA claims to state
- and federal courts, see 29 U. S. C. MDRV 626(c)(1) (allowing suits to be
- brought "in any court of competent jurisdiction"), because arbitration
- agreements, "like the provision for concurrent jurisdiction, serve to
- advance the objective of allowing [claimants] a broader right to select the
- forum for resolving disputes, whether it be judicial or otherwise."
- Rodriguez de Quijas, 490 U. S., at 483.
-
- B
-
-
- In arguing that arbitration is inconsistent with the ADEA, Gilmer also
- raises a host of challenges to the adequacy of arbitration procedures.
- Initially, we note that in our recent arbitration cases we have already
- rejected most of these arguments as insufficient to preclude arbitration of
- statutory claims. Such generalized attacks on arbitration "res[t] on
- suspicion of arbitration as a method of weakening the protections afforded
- in the substantive law to would-be complainants," and as such, they are
- "far out of step with our current strong endorsement of the federal
- statutes favoring this method of resolving disputes." Rodriguez de Quijas,
- supra, at 481. Consequently, we address these arguments only briefly.
- Gilmer first speculates that arbitration panels will be biased.
- However, "[w]e decline to indulge the presumption that the parties and
- arbitral body conducting a proceeding will be unable or unwilling to retain
- competent, conscientious and impartial arbitrators." Mitsubishi, supra, at
- 634. In any event, we note that the NYSE arbitration rules, which are
- applicable to the dispute in this case, provide protections against biased
- panels. The rules require, for example, that the parties be informed of
- the employment histories of the arbitrators, and that they be allowed to
- make further inquiries into the arbitrators' backgrounds. See 2 CCH New
- York Stock Exchange Guide MDRV 2608, p. 4314 (Rule 608) (1991) (hereinafter
- 2 N. Y. S. E. Guide). In addition, each party is allowed one peremptory
- challenge and unlimited challenges for cause. Id., at MDRV 2609 (Rule
- 609). Moreover, the arbitrators are required to disclose "any
- circumstances which might preclude [them] from rendering an objective and
- impartial determination." Id., at MDRV 2610, p. 4315 (Rule 610). The FAA
- also protects against bias, by providing that courts may overturn
- arbitration decisions "[w]here there was evident partiality or corruption
- in the arbitrators." 9 U. S. C. MDRV 10(b). There has been no showing in
- this case that those provisions are inadequate to guard against potential
- bias.
- Gilmer also complains that the discovery allowed in arbitration is more
- limited than in the federal courts, which he contends will make it
- difficult to prove discrimination. It is unlikely, however, that age
- discrimination claims require more extensive discovery than other claims
- that we have found to be arbitrable, such as RICO and antitrust claims.
- Moreover, there has been no showing in this case that the NYSE discovery
- provisions, which allow for document production, information requests,
- depositions, and subpoenas, see 2 N. Y. S. E. Guide MDRV 2619, pp. 4318 --
- 4320 (Rule 619); Securities and Exchange Commission Order Approving
- Proposed Rule Changes By New York Stock Exchange, Inc., Nat. Assn. of
- Security Dealers, Inc., and the American Stock Exchange, Inc., Relating to
- the Arbitration Process and the Use of Predispute Arbitration Clauses, 54
- Fed. Reg. 21144, 21149-21151 (1989), will prove insufficient to allow ADEA
- claimants such as Gilmer a fair opportunity to present their claims.
- Although those procedures might not be as extensive as in the federal
- courts, by agreeing to arbitrate, a party "trades the procedures and
- opportunity for review of the courtroom for the simplicity, informality,
- and expedition of arbitration." Mitsubishi, supra, at 628. Indeed, an
- important counterweight to the reduced discovery in NYSE arbitration is
- that arbitrators are not bound by the rules of evidence. See 2 N. Y. S. E.
- Guide MDRV 2620, p. 4320 (Rule 620).
- A further alleged deficiency of arbitration is that arbitrators often
- will not issue written opinions, resulting, Gilmer contends, in a lack of
- public knowledge of employers' discriminatory policies, an inability to
- obtain effective appellate review, and a stifling of the development of the
- law. The NYSE rules, however, do require that all arbitration awards be in
- writing, and that the awards contain the names of the parties, a summary of
- the issues in controversy, and a description of the award issued. See 2 N.
- Y. S. E. Guide MDRV 2627(a), (e), p. 4321 (Rule 627(a), (e)). In addition,
- the award decisions are made available to the public. See id., at MDRV
- 2627(f), p. 4322 (Rule 627(f)). Furthermore, judicial decisions addressing
- ADEA claims will continue to be issued because it is unlikely that all or
- even most ADEA claimants will be subject to arbitration agreements.
- Finally, Gilmer's concerns apply equally to settlements of ADEA claims,
- which, as noted above, are clearly allowed. {4}
- It is also argued that arbitration procedures cannot adequately further
- the purposes of the ADEA because they do not provide for broad equitable
- relief and class actions. As the court below noted, however, arbitrators
- do have the power to fashion equitable relief. 895 F. 2d, at 199-200.
- Indeed, the NYSE rules applicable here do not restrict the types of relief
- an arbitrator may award, but merely refer to "damages and/or other relief."
- 2 N. Y. S. E. Guide MDRV 2627(e), p. 4321 (Rule 627(e)). The NYSE rules
- also provide for collective proceedings. Id., at MDRV 2612(d) (Rule
- 612(d)). But "even if the arbitration could not go forward as a class
- action or class relief could not be granted by the arbitrator, the fact
- that the [ADEA] provides for the possibility of bringing a collective
- action does not mean that individual attempts at conciliation were intended
- to be barred." Nicholson v. CPC Int'l Inc., 877 F. 2d 221, 241 (CA3 1989)
- (Becker, J., dissenting). Finally, it should be remembered that
- arbitration agreements will not preclude the EEOC from bringing actions
- seeking class-wide and equitable relief.
-
- C
-
-
- An additional reason advanced by Gilmer for refusing to enforce
- arbitration agreements relating to ADEA claims is his contention that there
- often will be unequal bargaining power between employers and employees.
- Mere inequality in bargaining power, however, is not a sufficient reason to
- hold that arbitration agreements are never enforceable in the employment
- context. Relationships between securities dealers and investors, for
- example, may involve unequal bargaining power, but we nevertheless held in
- Rodriguez de Quijas and McMahon that agreements to arbitrate in that
- context are enforceable. See 490 U. S., at 484; 482 U. S., at 230. As
- discussed above, the FAA's purpose was to place arbitration agreements on
- the same footing as other contracts. Thus, arbitration agreements are
- enforceable "save upon such grounds as exist at law or in equity for the
- revocation of any contract." 9 U. S. C. MDRV 2. "Of course, courts should
- remain attuned to well-supported claims that the agreement to arbitrate
- resulted from the sort of fraud or overwhelming economic power that would
- provide grounds `for the revocation of any contract.' " Mitsubishi, 473 U.
- S., at 627. There is no indication in this case, however, that Gilmer, an
- experienced businessman, was coerced or defrauded into agreeing to the
- arbitration clause in his registration application. As with the claimed
- procedural inadequacies discussed above, this claim of unequal bargaining
- power is best left for resolution in specific cases.
-
- IV
-
-
- In addition to the arguments discussed above, Gilmer vigorously asserts
- that our decision in Alexander v. GardnerDenver Co., 415 U. S. 36 (1974),
- and its progeny -- Barrentine v. Arkansas-Best Freight System, Inc., 450 U.
- S. 728 (1981), and McDonald v. City of West Branch, 466 U. S. 284 (1984) --
- preclude arbitration of employment discrimination claims. Gilmer's
- reliance on these cases, however, is misplaced.
- In Gardner-Denver, the issue was whether a discharged employee whose
- grievance had been arbitrated pursuant to an arbitration clause in a
- collective-bargaining agreement was precluded from subsequently bringing a
- Title VII action based upon the conduct that was the subject of the
- grievance. In holding that the employee was not foreclosed from bringing
- the Title VII claim, we stressed that an employee's contractual rights
- under a collective-bargaining agreement are distinct from the employee's
- statutory Title VII rights:
-
- "In submitting his grievance to arbitration, an employee seeks to vindicate
- his contractual right under a collective-bargaining agreement. By
- contrast, in filing a lawsuit under Title VII, an employee asserts
- independent statutory rights accorded by Congress. The distinctly separate
- nature of these contractual and statutory rights is not vitiated merely
- because both were violated as a result of the same factual occurrence."
- 415 U. S., at 49-50.
-
-
- We also noted that a labor arbitrator has authority only to resolve
- questions of contractual rights. Id., at 53-54. The arbitrator's "task is
- to effectuate the intent of the parties" and he or she does not have the
- "general authority to invoke public laws that conflict with the bargain
- between the parties." Id., at 53. By contrast, "in instituting an action
- under Title VII, the employee is not seeking review of the arbitrator's
- decision. Rather, he is asserting a statutory right independent of the
- arbitration process." Id., at 54. We further expressed concern that in
- collective-bargaining arbitration "the interests of the individual employee
- may be subordinated to the collective interests of all employees in the
- bargaining unit." Id., at 58, n. 19. {5}
- Barrentine and McDonald similarly involved the issue whether
- arbitration under a collective-bargaining agreement precluded a subsequent
- statutory claim. In holding that the statutory claims there were not
- precluded, we noted, as in Gardner-Denver, the difference between
- contractual rights under a collective-bargaining agreement and individual
- statutory rights, the potential disparity in interests between a union and
- an employee, and the limited authority and power of labor arbitrators.
- There are several important distinctions between the Gardner-Denver
- line of cases and the case before us. First, those cases did not involve
- the issue of the enforceability of an agreement to arbitrate statutory
- claims. Rather, they involved the quite different issue whether
- arbitration of contract-based claims precluded subsequent judicial
- resolution of statutory claims. Since the employees there had not agreed
- to arbitrate their statutory claims, and the labor arbitrators were not
- authorized to resolve such claims, the arbitration in those cases
- understandably was held not to preclude subsequent statutory actions.
- Second, because the arbitration in those cases occurred in the context of a
- collective-bargaining agreement, the claimants there were represented by
- their unions in the arbitration proceedings. An important concern
- therefore was the tension between collective representation and individual
- statutory rights, a concern not applicable to the present case. Finally,
- those cases were not decided under the FAA, which, as discussed above,
- reflects a "liberal federal policy favoring arbitration agreements."
- Mitsubishi, 473 U. S., at 625. Therefore, those cases provide no basis for
- refusing to enforce Gilmer's agreement to arbitrate his ADEA claim.
- V
- We conclude that Gilmer has not met his burden of showing that
- Congress, in enacting the ADEA, intended to preclude arbitration of claims
- under that Act. Accordingly, the judgment of the Court of Appeals is
- Affirmed.
-
-
-
-
-
-
- ------------------------------------------------------------------------------
- 1
- Compare the decision below with Nicholson v. CPC Int'l Inc., 877 F. 2d
- 221 (CA3 1989).
-
- 2
- Section 1 of the FAA provides that "nothing herein contained shall
- apply to contracts of employment of seamen, railroad employees, or any
- other class of workers engaged in foreign or interstate commerce." 9 U. S.
- C. MDRV 1. Several amici curiae in support of Gilmer argue that that
- section excludes from the coverage of the FAA all "contracts of
- employment." Gilmer, however, did not raise the issue in the courts below,
- it was not addressed there, and it was not among the questions presented in
- the petition for certiorari. In any event, it would be inappropriate to
- address the scope of the MDRV 1 exclusion because the arbitration clause
- being enforced here is not contained in a contract of employment. The FAA
- requires that the arbitration clause being enforced be in writing. See 9
- U. S. C. 15 2, 3. The record before us does not show, and the parties do
- not contend, that Gilmer's employment agreement with Interstate contained a
- written arbitration clause. Rather, the arbitration clause at issue is in
- Gilmer's securities registration application, which is a contract with the
- securities exchanges, not with Interstate. The lower courts addressing the
- issue uniformly have concluded that the exclusionary clause in MDRV 1 of
- the FAA is inapplicable to arbitration clauses contained in such regis
- tration applications. See, e. g., Dickstein v. DuPont, 443 F. 2d 783 (CA1
- 1971); Malison v. Prudential-Bache Securities, Inc., 654 F. Supp. 101, 104
- (WDNC 1987); Legg, Mason & Co. v. Mackall & Coe, Inc., 351 F. Supp. 1367
- (DC 1972); Tonetti v. Shirley, 219 Cal. Rptr. 616, 618, 173 Cal. App. 3d
- 1144 (1985); see also Stokes v. Merrill Lynch, Pierce, Fenner & Smith, 523
- F. 2d 433, 436 (CA5 1975). We implicitly assumed as much in Perry v.
- Thomas, 482 U. S. 483 (1987), where we held that the FAA required a former
- employee of a securities firm to arbitrate his statutory wage claim against
- his former employer, pursuant to an arbitration clause in his registration
- application. Unlike the dissent, see post, at 4-6, we choose to follow the
- plain language of the FAA and the weight of authority, and we therefore
- hold that MDRV 1's exclusionary clause does not apply to Gilmer's
- arbitration agreement. Consequently, we leave for another day the issue
- raised by amici curiae.
-
- 3
- In the recently enacted Older Workers Benefit Protection Act, Pub. L.
- 101-433, 104 Stat. 978, Congress amended the ADEA to provide that "[a]n
- individual may not waive any right or claim under this Act unless the
- waiver is knowing and voluntary." See MDRV 201. Congress also specified
- certain conditions that must be met in order for a waiver to be knowing and
- voluntary. Ibid.
-
- 4
- Gilmer also contends that judicial review of arbitration decisions is
- too limited. We have stated, however, that "although judicial scrutiny of
- arbitration awards necessarily is limited, such review is sufficient to
- ensure that arbitrators comply with the requirements of the statute" at
- issue. Shearson American Express Inc. v. McMahon, 482 U. S. 220, 232
- (1987).
-
- 5
- The Court in Alexander v. Gardner-Denver Co., 415 U. S. 36 (1974), also
- expressed the view that arbitration was inferior to the judicial process
- for resolving statutory claims. Id., at 57-58. That "mistrust of the
- arbitral process," however, has been undermined by our recent arbitration
- decisions. McMahon, 482 U. S., at 231-232. "[W]e are well past the time
- when judicial suspicion of the desirability of arbitration and of the
- competence of arbitral tribunals inhibited the development of arbitration
- as an alternative means of dispute resolution." Mitsubishi Motors Corp. v.
- Soler Chrysler-Plymouth, Inc., 473 U. S. 614, 626-627 (1985).
-