In an antitrust suit by certain pharmacies against CaremarksPCS, the plaintiffs appealed a trial court order granting defendant Caremark’s motion to compel arbitration based on the parties’ arbitration agreement. The plaintiffs argued that (1) Caremark waived its right to arbitrate by actively litigating the case in federal court for over ten months before demanding arbitration; and (2) that the arbitration clause is unenforceable because it limited the remedies available under the Sherman Act. The Third Circuit agreed with the plaintiffs, finding that Caremark waived the right to arbitrate based on the fact that it actively litigated the matter for so long prior to demanding arbitration. The court did not reach the second argument, as it was rendered moot by the holding on waiver. In re Pharmacy Benefit Managers Antitrust Litigation, No. 12-1430 (3d Cir. Nov. 15, 2012).
This post written by John Pitblado.
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