Federal Arbitration Act Preemption

The Federal Arbitration Act is a United States federal statute enacted in 1925 that governs arbitration in contracts implicating interstate commerce. The Act applies in both federal and state courts. 
News & Analysis as of

Federal Court in California Rules That the Federal Arbitration Act Preempts California Statute That Requires Arbitrations Relating...

Bell Prods. v. Hosp. Bldg. & Equip. Co., 2017 U.S. Dist. LEXIS 9183 (ND of Cal. Jan. 23, 2017) - A Contractor, Hospital Building and Equipment Company (“HBE”) entered into a subcontract with a mechanical subcontractor,...more

Kentucky Federal Court Orders Further Briefing On Whether The Federal Arbitration Act Or Kentucky Law Applies In Dispute Involving...

The background of this case is as follows. State Insurance Commissioner Brian Maynard, acting as liquidator of the failed Kentucky Health Cooperative (“KYHC”), filed suit in Kentucky state court against CGI Technologies and...more

Do Arbitration Agreements Between Nursing Homes and Patients Violate Public Policy-- or Are They Enforceable Under the FAA?

The Federal Arbitration Act (FAA) provides for enforcement of arbitration agreements in a “contract evidencing a transaction involving commerce” in the district court. A nursing home sought to enforce arbitration agreements...more

Waiting for Gorsuch: SCOTUS Kicks Important Class-Action Waiver Case to Next Term

Last week, the United States Supreme Court informed litigants in Epic Systems Corp. v. Lewis that it is pushing the case to its October 2017 term. The lawsuit, which rose up through the Western District of Wisconsin and the...more

Nursing Home Arbitration Agreements: A Changing Landscape

Because arbitration proceedings often offer a less costly and more efficient alternative to the burdens of protracted courtroom litigation, arbitration agreements are increasingly common in the nursing home industry. However,...more

Two States Buck FAA Preemption, While Alabama Stays the Course

Three state supreme courts tackled arbitration law in recent weeks: Alabama, North Carolina, and Rhode Island. Rhode Island reversed a construction arbitration award because it disagreed with the arbitrator’s analysis. ...more

Supreme Court Justices (presumably 9 of them) Will Again Address Class Action Waivers in Arbitration Clauses

Last Friday, the US Supreme Court agreed to hear cases from the 9th, 7th, and 5th Circuits in which the courts are split on the issue whether class action waivers in employee arbitration agreements violate Section 7 of the...more

Nebraska Real Estate And Nebraska Borrowers, But Federal Arbitration Act Applies

In a fight over whether a single lending transaction involved interstate commerce, the Supreme Court of Nebraska found the Federal Arbitration Act (FAA) applied and preempted its state arbitration act. Wilczewski v. Charter...more

Third Circuit Reverses Order Denying Arbitration, Ruling That State Law Prohibiting Arbitration Of Insurance Matters Challenged...

Applied Underwriters Captive Risk Assurance Company appealed from the denial of its motion to compel arbitration in a dispute related to a reinsurance participation contract with South Jersey Sanitation Company. The trial...more

Supreme Court Update: Order List November 2016

The Court has been relatively quiet since our last missive—we're still waiting for the first signed opinion of the term—but we suspect your minds have been focused on other branches of government over the last few weeks...more

SCOTUS Accepts Review of Kentucky Nursing Home Arbitration Case

On October 28, the Supreme Court granted a cert petition in a case in which the Kentucky Supreme Court refused to enforce arbitration agreements in nursing home agreements.  (Kentucky recently topped my list of states hostile...more

FAQ About California’s New Law on Venue and Choice of Law in Employment Agreements

We recently blogged about Governor Brown signing S.B. 1241, which is now codified as Section 925 of the California Labor Code. The law, which affects venue and choice of law provisions in agreements entered into as a...more

The ERISA Litigation Newsletter - October 2016

Editor's Overview - This month, we look at the implications of the two federal district court cases from California that applied the ban on discretionary clauses typically found in ERISA plans to self-insured plans. The...more

Fair Pay and Safe Workplaces Not “Fair” to Contractors, According to Texas Judge

On October 24, 2016, U.S. District Judge Marcia Crone granted a preliminary injunction to halt the implementation of the “Fair Pay and Safe Workplaces” Executive Order 13673 (EO 13673), implementing provisions of the Federal...more

U.S. Agency Prohibits Nursing Home Arbitration Agreements

The Centers for Medicare and Medicaid Services (CMS), an agency within the U.S. Health and Human Services Department, has issued a final rule that includes prohibiting nursing homes and other long-term care facilities from...more

Class Action Arbitration after Dell Webb

Agreeing to arbitrate disputes, in lieu of traditional litigation, is not a new phenomenon. As consumers, we all contractually agree to arbitrate disputes on an almost daily basis. While not everyone may read the entire...more

Class Actions Back from Verge of Extinction

Back in 2011 it looked like class actions would join the mastodon, the dodo bird and other extinct species. In AT&T v. Mobility v. Concepcion, Justice Scalia and the conservative majority held that the Federal Arbitration...more

United Behavioral Health v. MIHS

Medicare Part C, 42 U.S.C. §§ 1395w-21 et seq., permits enrollees to obtain Medicare-covered healthcare services from private healthcare organizations and their third-party contractors. The Employee Retirement Income Security...more

Five Arbitration Cases You Should Know (Blogiversary Listicle #3)

I am celebrating five years of blogging by publishing one “listicle” per day this week. Monday, the topic was the five biggest surprises in arbitration law; Tuesday it was the five states most hostile to arbitration. (None...more

Ninth Circuit Holds that Arbitration Provision Prohibiting Concerted Actions Violates the National Labor Relations Act and is...

In Morris v. Ernst & Young, LLP (hereinafter “Morris”), the Ninth Circuit held that an arbitration provision prohibiting the filing of concerted actions, signed as a condition of employment, violated the National Labor...more

California High Court Rules that Contract Principles Govern Who Decides the Availability of Class Arbitration Under an Arbitration...

On July 28, 2016, in Sandquist v. Lebo Automotive, Inc., the California Supreme Court (the “Court”) held that the underlying arbitration agreement, as interpreted under California contract principles, should determine whether...more

Wisconsin Court of Appeals Issues Reminder of Power of Federal Arbitration Act

In the last generation, the U.S. Supreme Court has repeatedly promoted the policy under federal law in favor of arbitrating claims, including in the area of employment law. Among other issues, the Court has held on multiple...more

Three Blockbuster Summer Arbitration Decisions

While regular people count down the days to summer blockbusters that come in the form of high-paid actors fighting aliens or robots, I prefer my summer blockbusters in the form of arbitration opinions that have been months in...more

North Carolina Court of Appeals Declines to Enforce Arbitration Clause in Construction Contract

An arbitration clause in a contract can affect the method parties will use to resolve disputes, what remedies are available to them, and, most importantly, where they will arbitrate and what state's laws will apply. A recent...more

When a State Franchise Law Imposes an Obligation That Federal Law Preempts: What Dickey's Means for Franchisors

Have you ever been required by a state franchise regulator to include in your franchise agreement or disclosure document a provision that you believe he or she does not have the legal right to require? This issue often...more

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