law-FAA-preemption-claim | FAA-enforcement-by-mandamus | FAA applicability | TAA vs. FAA which one? |
Grounds for vacating arbitration award under the FAA | confirmation of arb award under the TAA | other
federal preemption cases |
The FAA "preempts all state laws that reflect a policy disfavoring arbitration and which are designed
specifically to limit arbitration." Faber v. Menard, Inc., 367 F.3d 1048, 1052 (8th Cir.2004). A party seeking
to invalidate the arbitration agreement bears the burden of demonstrating that Congress intended to
foreclose arbitration of the claims at issue. Green Tree Fin. Corporation-Alabama v. Randolph, 531 U.S.
79, 92, 121 S.Ct. 513, 148 L.Ed.2d 373 (2000). Courts resolve any doubts concerning the scope of
arbitrable issues in favor of arbitration, "whether the problem at hand is the construction of the contract
language itself or an allegation of waiver, delay, or a like defense to arbitrability." Moses H. Cone Mem'l
Hosp., 460 U.S. at 24-25, 103 S.Ct. 927; Suburban Leisure Ctr., Inc. v. AMF Bowling Prods., 468 F.3d 523,
526 (8th Cir.2006). Issues outside the court's scope of review remain for the arbitrator to decide in the first
instance. Faber, 367 F.3d at 1052.
FEDERAL ARBITRATION ACT (FAA) AND PREEMPTION
OF STATE ARBITRATION STATUTE
[B]y enacting the Federal Act, Congress did not occupy the entire field of arbitration regulation, and the
Federal Act pre-empts state arbitration law only to the extent that the state law actually conflicts with the
Federal Act. See Volt Info. Scis., Inc. v. Bd. of Trs. of Leland Stanford Junior Univ., 489 U.S. 468, 477, 109
S. Ct. 1248, 1255, 103 L. Ed. 2d 488 (1989); In re D. Wilson Constr. Co., 196 S.W.3d 774, 789-90 (Tex.
2006). Therefore, Texas law, including the Texas Arbitration Act, applies to the arbitration, except to the
extent that Texas law actually conflicts with the Federal Act. See In re Akin Gump Strauss Hauer & Feld,
LLP, 252 S.W.3d 480, 489 (Tex. App.-Houston [14th Dist.] 2008, orig. proceeding).
Palisades Acquisition XVI, LLC v. Chatman (Tex.App.- Houston [14th Dist.] Jun. 16, 2009)(Frost) (suit to
confirm arbitration award under FAA erroneously dismissed by trial court)(county court jurisdiction)(Harris
County county court at law has jurisdiction to confirm arbitration award, concurrent jurisdiction, preemption
not applicable in absence of conflict between state and federal arbitration act)
HOUSTON COURT OF APPEALS REVERSES DISMISSAL OF CREDIT CARD COMPANY'S SUIT FOR
JUDICIAL CONFIRMATION OF ARBITRATION AWARD OBTAINED AGAINST CARD HOLDER
FIA Card Services, NA v. Sweet (Tex.App.- Houston [14th Dist.] Jun. 23, 2009)(Frost)
(credit card issuer may seek confirmation of arbitration under FAA in county court at law [state court])
(Dismissal of the law suit for want of jurisdiction was error).
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