Arbitrating Arbitrability: Part One of the Effect of Recent SCOTUS Decisions on Arbitration in South Carolina
The U.S. Supreme Court issued three decisions this term addressing “arbitrability”—what matters are appropriate for arbitration-- pursuant to the Federal Arbitration Act (the “Act”): Shady Grove , Stolt-Nielsen , and Rent-A-Center . The South Carolina Supreme Court also recently issued a significant decision addressing arbitrability in the context of the Act. Herron v. Century BMW (“ Herron ”) was briefed and argued before all three of these Supreme Court decisions were issued. This post and two subsequent posts will analyze Herron in the context of some of the issues in play in Shady Grove , Stolt-Nielsen , and Rent-A-Center . Herron Plaintiffs brought a class action in state court against Century BMW and other South Carolina auto dealers alleging that the dealers charged an illegal administrative fee in violation of the South Carolina Regulation of Manufacturers, Distributors, and Dealers Act ("Dealers Act"). Century moved to compel arbitration pursuant to a