Forum

U.S. Supreme Court

Case Status

Decided

Docket Number

06-1463

Term

2007 Term

Oral Argument Date

January 14, 2008

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Questions Presented

Whether the Federal Arbitration Act and Buckeye Check Cashing, Inc. v. Cardegna, 546 U.S. 440, 126 S.Ct. 1204 (2006) preempt the holding in this case, voiding an interstate arbitration agreement under the California Talent Agencies Act?

Case Updates

Supreme Court clarifies contract validity decisions by state agencies

February 20, 2008

The Supreme Court clarified that its decision in Buckeye Check Cashing applies with equal force to state administrative agencies’ decisions about contract validity when the contract includes an arbitration provision.

U.S. Chamber files amicus brief

November 08, 2007

NCLC urged the Supreme Court to clarify that its decision in Buckeye Check Cashing v. Cardegna applies with equal force to state administrative agencies’ decisions about contract validity when the contract includes an arbitration provision. In Buckeye Check Cashing, the Court relied on well-established precedent to conclude that arbitrators - not courts - are empowered by the Federal Arbitration Act to resolve issues of contract validity when the validity of the arbitration provision itself is not at issue. In this case, the state trial court held that, under California law, the petitioner must first exhaust administrative remedies with the California Labor Commissioner before seeking relief from an arbitrator. In its brief, NCLC argued that the FAA preempts California law and that decisions about contract validity should be made by arbitrators in the first instance.

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