AAA Yearbook on Arbitration & the Law - 25th Edition - Chapter 3 - Interaction of Federal and State Law

Author(s):

Stephen K. Huber

Ben H. Sheppard Jr.

Page Count:

48 pages

Published:

April, 2010

Practice Areas:

Choice of Forum/ Place of Proceedings,

Court Decisions,

AAA,

FAA

Author Detail:

STEPHEN K. HUBER is Professor Emeritus at the University of Houston Law Center, and has served as a visiting professor at the University of Texas, Rice University (Political Science), Pepperdine Law School (Dispute Resolution Program), and the University of East Africa (Dar es Salaam, Tanzania). Mr. Huber is a member of the State Bar of Texas, and the editor of Alternative Resolutions, the quarterly journal of the Dispute Resolution Section. He is the author of numerous publications relating to arbitration.

BEN H. SHEPPARD, JR. is a Distinguished Lecturer and Director of the A.A. White Dispute Resolution Center at the University of Houston Law Center. From 1969 through 2005 he practiced at Vinson & Elkins L.L.P. where he was a Partner and Co-Chair of the firm's international dispute resolution practice. He was chair of AAA/ICDR task force that promulgated the 2006 amendment to the ICDR International Arbitration Rules that established a pre-arbitral emergency arbitrator procedure. He was the author of the report and recommendation to the ABA House of Delegates in support of the 2004 Revision to the AAA/ABA Code of Ethics for Arbitrators in Commercial Disputes. He chaired one of the two working groups that promulgated the CPR Protocol on Disclosure of Documents and Presentation of Witnesses in Commercial Arbitration. He is a past chair of the Disputes Division of the ABA Section of International Law and for five years served as editor-in-chief of The International Arbitration News. He is a member of the American Law Institute and a Fellow of the College of Commercial Arbitrators.

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Originally from: AAA Yearbook on Arbitration and the Law - 25th Edition

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3.01 Commerce Clause Preemption of State Law by the FAA

AT&T Mobility LLC v. Concepcion, 131 S.Ct. 1740 (2011) The FAA preempts California’s judicial rule prohibiting as unconscionable waivers of class arbitration in consumer cases.

Citations and References

See § 2.06, supra for full discussion of the decision.

Preston v. Ferrer, 128 S. Ct. 978 (2008)
When parties agree to arbitrate all questions arising under a contract, the FAA supersedes state laws granting primary jurisdiction in another forum, whether judicial or administrative.

Ferrer, who appears on television as “Judge Alex” contracted with Preston, an entertainment industry attorney, for personal management services. The parties’ contract mandated arbitration for “any dispute . . . relating to the [contract’s] terms . . . in accordance with the [AAA] rules.” Preston invoked the arbitration clause in order to recover fees allegedly owed under the contract.

Table of Contents:

Interaction of Federal and State Law 3.01 Commerce Clause Preemption of State Law by the FAA AT&T Mobility LLC v. Concepcion, 131 S.Ct 1740 (2011) Preston v. Ferrer, 128 S. Ct. 978 (2008) Coneff v. AT&T Corp., 673 F.3d 1155 (9th Cir. 2012) Universal Ins. Co., Inc. v. Warrentech Consumer Prod. Servs., Inc., 849 F.Supp.2d 227, (D.P.R. 2012) Bradley v. Brentwood Homes, Inc., 730 S.E.2d 312 (S.C. 2012) Robinson v. Title Lenders, Inc., 364 S.W.3d 505 (Mo. 2012) Nafta Traders, Inc. v. Quinn, 339 S.W.3d 84 (Tex. 2011) Aramark Uniform & Career Apparel v. Hunan, Inc., 757 N.W.2d 205 (N.M. 2008) Satomi Owners Ass’n v. Satomi, L.L.C., 225 P.3d 213 (Wash. 2009) (en banc) Moscatiello v. Hilliard, 939 A.2d 325 (Pa. 2007) Flexon v. PHC-Jasper, Inc., 731 S.E.2d 1 (S.C. App. 2012) The Shakespeare Foundation, Inc. v. Jackson, 61 So.3d 1194 (Fla. App. 1 Dist., 2011) 3.02 The Role of State Arbitration Law Marmet Health Care Center Inc. v. Brown, 132 S.Ct. 1201 (2012) Southern Pioneer Life Insurance Co. v. Thomas, 385 S.W.3d 770 (Ark. 2011) Quinn v. NAFTA Traders, Inc., 360 S.W.3d 713 (Tex. App.--Dallas 2012, pet. denied) 3.03 Federal Court Jurisdiction and the FAA CompuCredit Corporation v. Greenwood, 132 S.Ct. 665 (2012) Vaden v. Discover Bank, 129 S. Ct. 1262 (2009) Ipcon Collections L.L.C. v. Costco Wholesale Corp., 698 F.3d 58 (2d Cir. 2012) Countrywide Home Loans v. Mortgage Guaranty Insurance Corp., 642 F.3d 849 (9th Cir. 2011) Community State Bank v Strong, 651 F.3d 1241 (11th Cir. 2011) Northport Health Serv. v. Rutherford, 605 F.3d 483 (8th Cir. 2010) Geographic Expeditions, Inc. v. Estate of Lhotka ex rel. Lhotka, 599 F.3d 1102 (9th Cir. 2010) 3.04 Choice of Law and Choice of Forum KPMG LLP v. Cocchi, 132 S.Ct. 23 (2011). Wootten v. Fisher Investments, Inc., 688 F.3d 487 (8th Cir. 2012) Pokorny v. Quixtar, 601 F.3d 987 (9th Cir. 2010) Northrop Grumman Ship Sys., Inc. v. Ministry of Defense of the Republic of Venezuela, 575 F.3d 491 (5th Cir. 2009) BDO Seidman, LLP v. SSW Holding Co, Inc., 386 S.W.3d 361 (Ark. 2012) In re Lopez, 372 S.W.3d 174 (Tex. 2012)