Arbitration Law-Second Circuit Holds Section 7 of the Federal Arbitration Act Does Not Permit Arbitration Panels to Issue Prehearing Document Subpoenas to Nonparties-Life Receivables Trust v. Syndicate 102 at Lloyd’s of London, 549 F.3d 210 (2d Cir. 2008)

The Federal Arbitration Act (FAA) ensures judicial enforcement and validity of private arbitration agreements.  Section 7 of the FAA is the only section that deals with discovery, and grants arbitration panels the authority to summon persons before the panel as witnesses and bring with them materials to be used as evidence in the case.  In Life Receivables Trust v. Syndicate 102 at Lloyd’s of London, the United States Court of Appeals for the Second Circuit (Second Circuit) considered whether section 7 of the FAA authorizes arbitrators to compel prehearing document discovery from entities not parties to the arbitration proceedings.  The Second Circuit, relying on the plain language of section 7, reversed the order enforcing a prehearing subpoena for documents from entities not parties to the arbitration proceedings. . .