New Second Circuit Ruling on Discovery in Arbitrations

Adding to a circuit split, the Second Circuit held last week that §7 of the Federal Arbitration Act does not authorize arbitrators to issue pre-hearing document subpoenas to third parties. However, in Life Receivables Trust v. Syndicate 102 at Lloyd’s of London, No. 07-1197-cv (2d Cir. Nov. 25, 2008), the court suggested several possible avenues for obtaining documents from non-parties, including the use of the § 7 subpoena power to summon witnesses to preliminary hearings for the purpose of requiring them to produce documents.