Arbitrators, Not Court, Should Decide Claim-Preclusive Effect of Prior Award, 2nd Cir. Rules

NEW YORK — The “extraordinary remedies” authorized by the All Writs Act cannot be used by a district court to enjoin a second arbitration between parties to a contractual arbitration agreement based on the purportedly claim-preclusive effect of a prior federal judgment confirming the result of the parties' earlier arbitration, the 2nd Circuit U.S. Court of Appeals has ruled.

In a Jan. 14 opinion, the appellate court affirmed that Citigroup Inc. has not demonstrated an adequate basis for an extraordinary injunction pursuant to the All Writs Act; therefore Citigroup's complaint should be dismissed and the dispute should proceed to arbitration.