U.S. Chamber Urges Supreme Court To Reverse Anti-Arbitration Decision and Apply California’s Pro-Severability Principles to Contract at Issue
Whether California’s arbitration-only severability rule is preempted by the Federal Arbitration Act.
In its brief, the U.S. Chamber urging the Supreme Court to reverse a Ninth Circuit decision that applied a discriminatory rule to analyze an arbitration agreement instead of California’s generally applicable pro-severability principles. The brief argues that California’s Armendariz rule discriminates against arbitration agreements in violation of the Federal Arbitration Act (“FAA”) and rests on impermissible hostility to arbitration. The brief also argues that the FAA requires states to put arbitration on at least equal footing with other contract provisions and that California’s approach treats arbitration agreements less favorably when deciding whether to sever invalid provisions.
A settlement was reached. The petition is dismissed.