The Federal Arbitration Act (FAA) applies generally to most arbitration agreements, but parties can choose to have the procedural law of the place of arbitration apply instead. On many issues, there is no material difference between these two statutes, but in certain areas, the differences can be material. One of these is where a party seeks to compel arbitration where there are other actions pending that are not subject to arbitration or where clams are made in the action sought to be compelled into arbitration and where non-signatory parties are also parties to the action.

The FAA, Chapter 1 (9 U.S.C. §§ 1-16) applies to domestic arbitrations. The California Arbitration Act (Cal. Code Civ. Proc. §§ 1280-1294.2) governs domestic arbitrations seated in California. The FAA’s substantive provisions preempt inconsistent state law. But parties may choose to be governed by state procedural law, in which case there would be no preemption.

Originally published on Law.com on June 14, 2015.