10/06/2026
The Oklahoma Supreme Court issued an important arbitration decision today in Merit Holdings LLC v. International Bank of Commerce, 2026 OK 70.
The Court held that a party did not waive its right to arbitration by actively participating in litigation where the parties’ contract specifically contained an anti-waiver provision allowing that conduct.
IBC had filed motions to dismiss, participated in discovery, defended against requests for injunctive relief, sought attorney fees, and did not obtain a stay of the litigation. Ordinarily, those are the kinds of actions a court may consider when deciding whether a party has abandoned its right to arbitrate.
But the parties’ agreement expressly provided that active participation in litigation would not waive arbitration, and IBC asserted its arbitration rights with its first substantive filing.
The Supreme Court held that*conduct expressly permitted by an arbitration-specific anti-waiver provision cannot itself establish waiver of the right to arbitrate.
The Court also reaffirmed an important distinction involving fraudulent inducement: if the alleged fraud goes to the contract as a whole, that issue is generally for the arbitrator. To keep the issue in court, the challenge must be directed specifically at the arbitration agreement itself. Here, the agreement also contained a delegation clause assigning arbitrability questions to the arbitrator.
The Court vacated the Court of Civil Appeals’ decision and affirmed the trial court’s order compelling arbitration.
For Oklahoma lawyers drafting or litigating arbitration provisions, this is a significant decision. The language of the arbitration clause, and particularly its anti-waiver and delegation provisions, can materially determine what happens after litigation begins.
*Merit Holdings LLC v. International Bank of Commerce*, 2026 OK 70.