The Seventh Circuit recently addressed an inconsistency in Seventh Circuit case law regarding how district court orders denying arbitration are reviewed.
The defendant sought de novo review of the ultimate waiver decision, and clear error review of only the underlying factual findings. Meanwhile, the plaintiff asserted clear error review of the ultimate waiver decision and the underlying factual findings. The Court observed that its authority actually supported both parties’ positions. “Partly to blame is that motions to compel arbitration can raise more than one mixed question of law and fact.”
The court concluded that clear-error review applies unless the reviewing the order “requires us to elaborate on this circuit’s waiver rules and set precedent for future cases,” in which case review is de novo. As such, the line of authority calling for de novo standard of review of orders denying arbitration is now dead.
The case is Moore v. Club Exploria, LLC, No. 25-2721 (7th Cir. Aug. 18, 2026).
