Client Alert

Arbitration and Preemption: California Supreme Court and Ninth Circuit Issue Two Key Rulings

April 12, 2005

Grace Carter and Naomi Jane Gray

A frequent question for companies that have arbitration agreements with suppliers, customers or investor-clients is whether federal statutes that regulate arbitration prevail over state standards that are often more restrictive – and less arbitration-friendly – than federal law.  In the last month, two California courts have issued important rulings that reach different answers to the question.