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ARTICLE · 15 MAY 2017

Supreme Court Decision Alert - May 15, 2017

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Today, the Supreme Court issued two decisions, described below, of interest to the business community: Federal Arbitration Act—Preemption of State Law; Fair Debt Collection Practices Act—Time-Barred Debts.

United StatesLitigation, Mediation & Arbitration
Brian Netter
Brian Netter
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Today, the Supreme Court issued two decisions, described below, of interest to the business community.

Federal Arbitration Act—Preemption of State Law

Kindred Nursing Centers L.P. v. Clark, No. 16-32

The Federal Arbitration Act (FAA) requires courts to place arbitration provisions on an equal footing with other contract terms.  In the decision under review, the Kentucky Supreme Court had refused to enforce two arbitration provisions executed by individuals holding powers of attorney, because the power-of-attorney documents did not specifically mention arbitration or the ability to waive the principals' right to trial by jury. The Kentucky court reached that conclusion even though Kentucky law permitted an attorney-in-fact to enter into other types of contracts without a specific mention of those contracts in the power of attorney documents.

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