Puerto Rico Telephone Company, Inc. v. Worldnet Telecommunications, LLC

1st CircuitOct 21, 2025

Split Score

SplitScore: 75/100

Case Summary

Disposition

Vacated

Puerto Rico Telephone Company asked the First Circuit to confirm an arbitration award under § 9 of the Federal Arbitration Act. After the district court dismissed for lack of standing, the Supreme Court decided Badgerow v. Walters, which held that federal courts generally lack subject-matter jurisdiction over § 9 and § 10 confirmation or vacatur requests unless another independent basis exists. Applying Badgerow, the First Circuit vacated the district-court judgment and remanded with instructions to dismiss without prejudice for lack of subject-matter jurisdiction.

Circuit Split Identified

Legal Issue

Whether federal courts may exercise subject-matter jurisdiction over applications to confirm or vacate arbitration awards under FAA §§ 9 and 10 by using the "look-through" approach to the underlying dispute.

Circuit Positions

1st Circuit(this circuit)2nd Circuit4th Circuit5th Circuit

Apply Vaden-style look-through test and exercise federal-question jurisdiction over § 9/§ 10 applications.

7th Circuit9th Circuit11th Circuit

No look-through; jurisdiction must appear on the face of the § 9/§ 10 application itself.

Conflict Summary

Several circuits (including the First) applied the Vaden ‘look-through’ approach, finding jurisdiction whenever the underlying arbitration dispute presented a federal question, while other circuits limited jurisdiction to what appears on the face of the § 9 or § 10 application and therefore usually found no federal jurisdiction absent diversity or another independent ground.

Parties & Counsel

Parties

Appellant:Puerto Rico Telephone Company, Inc.
Appellee:WorldNet Telecommunications, LLC

Legal Counsel

Appellant:Eliezer A. Aldarondo-López, Aldarondo & López-Bras, LLC
Appellee:Miguel J. Rodríguez-Marxuach, María Celeste Colberg-Guerra, Rodríguez Marxuach, PSC

Opinion Document