Supreme Court holds that prejudice need not be shown if a party waives its right to demand arbitration

The FAA (Federal Arbitration Act) permits a party to an arbitration agreement to demand, when sued in court, that the lawsuit be submitted to arbitration instead, but what if that party waives its right to demand arbitration by litigating the case in court for a while before deciding to demand arbitration? Must the other party show it was prejudiced by the delay? A unanimous Supreme Court held, no, the other party need only show that the party now demanding arbitration had knowingly relinquished its right to demand arbitration by acting inconsistently with that right. The case was Morgan v. Sundance, Inc.  The Supreme Court left to the lower courts to decide how its new rule would apply in particular circumstances, holding only that prejudice is not required.