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ARTICLE · 22 FEBRUARY 2012

Supreme Court Decision Alert - February 21, 2012

Mayer Brown
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Section 2 of the Federal Arbitration Act ("FAA") states that written agreements to arbitrate "shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract." 9 U.S.C. § 2.

United StatesLitigation, Mediation & Arbitration
Andrew Tauber
Andrew Tauber
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Previously published in October 2011.

Keywords: Federal Arbitration Act, FAA, pre-dispute arbitration agreements, personal injury, wrongful death, nursing homes

Federal Arbitration Act—Preemption of State Law

On February 21, 2012, the Supreme Court issued one decision, described below, of interest to the business community.

Marmet Health Care Center, Inc. v. Brown, No. 11-391 and 11-394

Section 2 of the Federal Arbitration Act ("FAA") states that written agreements to arbitrate "shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract." 9 U.S.C. § 2. Despite this requirement, the West Virginia Supreme Court of Appeals declared invalid all pre-dispute arbitration agreements that apply to personal-injury or wrongful-death claims against nursing homes. The West Virginia court held that the FAA did not preempt this per se state-law rule.

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