In a recent decision, McCormick v. America Online, No. 17-1542 (4th Cir. Nov. 29, 2018) (click here for a copy of the decision), the Fourth Circuit addressed how district courts should assess subject matter jurisdiction in connection with a petition to vacate an arbitrator’s award. The Fourth Circuit, disagreeing with the Third and Seventh Circuits and agreeing with the First and Second Circuits, held that a federal court has jurisdiction over a motion to vacate an award if the court would have had jurisdiction in connection with the underlying dispute on the merits. The Fourth Circuit adopted the Supreme Court’s “look through” approach from the Supreme Court’s 2009 decision in Vaden v. Discover Bank, although Vaden involved the enforcement of an arbitration agreement, not the vacatur of an arbitration award.
