On May 23, 2022, the Supreme Court unanimously held that plaintiffs need not show prejudice to succeed on a waiver defense to a motion to compel arbitration. The decision was a setback for WLF, which argued that prejudice is required when plaintiffs breach their contracts and sue in federal court. Despite this setback, the Supreme Court’s decision once again rejected arbitration-specific rules that States like California continue to enforce. On remand, the Eighth Circuit should apply general legal principles and hold that Sundance did not waive its right to arbitration.
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