Bloomberg Law
May 23, 2022, 2:37 PMUpdated: May 23, 2022, 8:06 PM

Supreme Court Strikes Taco Bell Franchise’s Arbitration Win (1)

Erin Mulvaney
Erin Mulvaney

The US Supreme Court held that a federal appeals court overstepped its authority in creating an arbitration-related rule in a dispute over an Iowa fast-food worker’s overtime case against a Taco Bell franchise.

The unanimous court’s narrow decision Monday vacated a ruling from the US Court of Appeals for the Eighth Circuit, which ruled that the company didn’t lose its right to force arbitration because it waited too long in the court process to seek it. The case will be remanded to the appeals court.

The Eighth Circuit found that Robyn Morgan, who sued franchise Sundance Inc. in 2018, had ...

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