100 Iowa L. Rev. 411 (2014)

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Abstract

Section 5 of the Federal Arbitration Act (“FAA”) allows courts to appoint a replacement arbitration forum when the designated arbitration forum is unavailable. However, it is unclear how far the power to replace extends, with the Seventh Circuit in 2013 deepening a current circuit split involving the section 5 replacement power. The Third, Fifth, and Eleventh Circuits recognize the integral-part rule, which does not allow a court to appoint a replacement arbitration forum if the designation of the forum in the contract is considered integral. The Seventh Circuit is the lone circuit that has rejected the integral-part rule in its entirety and allows the appointment of a replacement arbitration forum no matter the contract. Furthermore, of the circuits that recognize the integral-part rule, only the Fifth Circuit has applied the rule in a way that recognizes an arbitration forum designation as integral. This Note recommends that the Supreme Court adopt the integral-part rule and the application of the rule that finds arbitration forum designations integral to a contract. Such action by the Supreme Court would be justified by traditional contract principles and the congressional intent of the FAA.