News & Analysis as of

Federal Arbitration Act Supreme Court of the United States 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. 

Kindred Nursing Centers L.P. v. Clark: The Supreme Court Reemphasizes That Arbitration Agreements Must Be Placed on Equal Footing...

by K&L Gates LLP on

On May 15, 2017, the Supreme Court of the United States reaffirmed that the Federal Arbitration Act (the “FAA”) preempts state laws placing agreements to arbitrate on weaker footing than other types of contracts. In Kindred...more

State Supreme Courts Continue to Try to Chip Away at FAA Preemption; The United States Supreme Court Is Not Amused

The Federal Arbitration Act (“FAA”), 9 U.S.C. § 1, et seq., does not contain an express preemption provision, nor was it intended to be the exclusive codified arbitration law in all circumstances. However, the United States...more

U.S. Supreme Court Says: We Mean It--You Can’t Single Out Arbitration Agreements for Disfavored Treatment

by Foley & Lardner LLP on

On Monday, May 15, 2017, the Supreme Court issued its latest reminder to state and lower federal courts that they must treat arbitration agreements as equally valid as all other contracts. In Kindred Nursing Centers Limited...more

Supreme Court Holds Federal Arbitration Act Preemption Applies To Contract Formation Rules

by Carlton Fields on

Last week, the U.S. Supreme Court rejected the Kentucky Supreme Court’s use of a clear-statement rule to require that powers of attorney specifically authorize a representative to enter into an arbitration agreement, finding...more

Supreme Court Emphatically Defends Arbitration Agreements from State Interference

by Littler on

On May 15, 2017, the U.S. Supreme Court reiterated the principle that the Federal Arbitration Act (FAA) requires states to treat arbitration agreements just as they treat other types of contracts. In Kindred Nursing Centers...more

No Pre-Emption Exemption - The U.S. Supreme Court and the Kentucky Supreme Court are not kindred spirits with respect to state law...

The U.S. Supreme Court and the Kentucky Supreme Court are not kindred spirits with respect to state law restrictions on arbitration agreements....more

U.S. Supreme Court Reaffirms FAA Preemption Over Discriminatory State Laws

by Ballard Spahr LLP on

Emphasizing that the Federal Arbitration Act (FAA) preempts state laws that "single out arbitration agreements for disfavored treatment," the U.S. Supreme Court has overturned the Kentucky Supreme Court's refusal to enforce...more

Supreme Court Applies FAA Preemption to Contract Formation

The Supreme Court held that the Federal Arbitration Act preempts state law governing contract formation where a state rule discriminates against arbitration, a holding with broad implications for state-court decisions that...more

Supreme Court Reinforces the Primacy of the Federal Arbitration Act, Even Over a “Divine God-Given Right”

by Benesch on

Kentucky law speaks of the right to jury trial in theological terms. The Kentucky Constitution provides that “[t]he ancient mode of trial by jury shall be held sacred, and the right thereof remain inviolate, subject to such...more

Supreme Court Decides Kindred Nursing Centers, L.P. v. Clark

by Faegre Baker Daniels on

On May 15, 2017, the Supreme Court of the United States decided Kindred Nursing Centers, L.P. v. Clark, No. 16-32, holding that state courts may not single out arbitration agreements for “disfavored...more

SCOTUS Reverses KY Nursing Home Arbitration Decision; Refuses To Prioritize Right To Jury Trial

Just as I predicted, SCOTUS reversed the Kentucky Supreme Court’s decision in Kindred this morning. The interesting piece, though, is that the seven member majority went out of its way to cut off some of the “on trend”...more

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

by Pullman & Comley, LLC on

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

by Foley & Lardner LLP on

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

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

by Fox Rothschild LLP on

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

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

Ninth Circuit Adopts California Rule Voiding Arbitration Provisions Barring Certain Representative Claims

In recent decisions, both the Court of Appeals for the Ninth Circuit and the California Supreme Court have held that arbitration clauses barring employees from pursuing class actions in arbitration are unenforceable with...more

Sign O’ The Times: SCOTUS Denies Cert In Franchise Arbitration Dispute

On Monday of this week, after stringing the parties along for five months, SCOTUS denied cert in a case involving the intersection between arbitration and franchise regulation. The petition was filed in November of 2015,...more

U.S. Supreme Court Ruling Upholds Arbitration Over Class Action Litigation

by Morrison & Foerster LLP on

SUPREME COURT UPHOLDS CLASS ARBITRATION WAIVERS - With its ruling on December 14, 2015, the Supreme Court continues to protect arbitration as a means of dispute resolution by cracking down on attempts to circumvent the...more

Have Your Cake and Eat It, Too? Handbook Contract Disclaimers & Mandatory Arbitration Policies

by Wilson Elser on

A New Jersey court recently used the so-called contract “disclaimer” language in an employer’s handbook to preclude the employer from enforcing a mandatory arbitration program contained in that same handbook. The court’s...more

Class Action Report: 2010-2015

Over the last decade, the U.S. Supreme Court issued a string of opinions with profound implications for the enforceability of arbitration provisions and class action waivers in consumer contracts. These decisions, the most...more

Class Arbitration Waiver Clause Once Again Trumps State Law in SCOTUS DirecTV Ruling

by LeClairRyan on

On December 14, 2015, the Supreme Court of the United States ruled in DirecTV, Inc. v. Imburgia that a class arbitration waiver clause in DirecTV's customer service contracts was enforceable under the Federal Arbitration Act...more

Labor & Employment Advisory: Supreme Court Reiterates That the Federal Arbitration Act Preempts State Bans on Class Arbitration...

by Alston & Bird on

The U.S. Supreme Court recently issued another opinion affirming the broad scope of the Federal Arbitration Act (FAA) and its impact on state efforts to invalidate class action waivers in arbitration agreements. Although the...more

When it Comes to Arbitration Agreement Class Action Waivers, Concepcion is Still the Law, Even in California.

In 2014, we blogged about a California state appellate court decision invalidating the arbitration clause in DIRECTV’s consumer contracts. We found that California decision to be noteworthy because it seemed to fly in the...more

U.S. Supreme Court Applies Concepcion In Reversing Order Finding Class Arbitration Waiver Unconscionable Under California Law

by Carlton Fields on

On December 14, 2015, the U.S. Supreme Court applied its landmark Concepcion decision and reversed a California appellate court’s ruling that an arbitration clause containing a class arbitration waiver was unenforceable under...more

DIRECTV v. Imburgia

by Franczek Radelet P.C. on

Last week, in DIRECTV v. Imburgia, the United States Supreme Court issued a decision once again re-affirming the strong federal policy in favor of arbitration. At issue in this case was a service agreement entered into...more

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