Preston v. Ferrer
Encyclopedia
Preston v. Ferrer, 552 U.S.
346 (2008), was a decision by the Supreme Court of the United States
holding that the Federal Arbitration Act
("FAA") overrules state laws declaring that certain disputes must be resolved by a state administrative agency.
Alex Ferrer, who plays Judge Alex
in a syndicated American courtroom television show, was notified of a demand for arbitration
by Arnold Preston, a California
attorney. Preston claimed Ferrer owed him fees under a "personal management" contract; in the contract, they had agreed to arbitrate disputes rather than bring them to court. Ferrer then petitioned the California Labor Commissioner, claiming the contract was invalid and unenforceable under California law, as Preston had allegedly acted as a talent agent
without a license. Preston argued that he was not acting as a talent agent, and that an arbitrator, not a court, should decide whether this was the case.
Citing Southland Corp. v. Keating
, the Court noted that it had ruled consistently that the FAA was "a national policy favoring arbitration" when parties contract to settle disputes in that manner, and that it "foreclose[s] state legislative attempts to undercut the enforceability of arbitration agreements." Citing two other previous Supreme Court rulings, the Court also noted that challenges to the validity of an entire contract are subject to the arbitration agreed to in the contract. Ferrer's argument was "unconvincing", the Court ruled, that state law required the exhaustion of administrative remedies before arbitration would commence.
In a 4-sentence dissent, Justice Clarence Thomas
wrote, "As I have stated on many previous occasions, I believe that the Federal Arbitration Act ... does not apply to proceedings in state courts."
United States Reports
The United States Reports are the official record of the rulings, orders, case tables, and other proceedings of the Supreme Court of the United States. Opinions of the court in each case, prepended with a headnote prepared by the Reporter of Decisions, and any concurring or dissenting opinions are...
346 (2008), was a decision by the Supreme Court of the United States
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
holding that the Federal Arbitration Act
Federal Arbitration Act
In United States law, the Federal Arbitration Act is a statute that provides for judicial facilitation of private dispute resolution through arbitration. It applies in both state courts and federal courts, as was held in Southland Corp. v. Keating...
("FAA") overrules state laws declaring that certain disputes must be resolved by a state administrative agency.
Alex Ferrer, who plays Judge Alex
Judge Alex
Judge Alex is a United States syndicated courtroom television show that debuted September 12, 2005. The host/arbitrator is the Hon. Alex Ferrer, a former police officer, lawyer, and Florida judge. The show was produced in Houston at the television studios of Fox's KRIV , as was previously done with...
in a syndicated American courtroom television show, was notified of a demand for arbitration
Arbitration
Arbitration, a form of alternative dispute resolution , is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons , by whose decision they agree to be bound...
by Arnold Preston, a California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
attorney. Preston claimed Ferrer owed him fees under a "personal management" contract; in the contract, they had agreed to arbitrate disputes rather than bring them to court. Ferrer then petitioned the California Labor Commissioner, claiming the contract was invalid and unenforceable under California law, as Preston had allegedly acted as a talent agent
Talent agent
A talent agent, or booking agent, is a person who finds jobs for actors, authors, film directors, musicians, models, producers, professional athletes, writers and other people in various entertainment businesses. Having an agent is not required, but does help the artist in getting jobs...
without a license. Preston argued that he was not acting as a talent agent, and that an arbitrator, not a court, should decide whether this was the case.
Citing Southland Corp. v. Keating
Southland Corp. v. Keating
Southland Corp. v. Keating, 465 U.S. 1 , is a United States Supreme Court decision concerning arbitration. It was originally brought by 7-Eleven franchisees in California state courts, alleging breach of contract by the chain's then parent corporation...
, the Court noted that it had ruled consistently that the FAA was "a national policy favoring arbitration" when parties contract to settle disputes in that manner, and that it "foreclose[s] state legislative attempts to undercut the enforceability of arbitration agreements." Citing two other previous Supreme Court rulings, the Court also noted that challenges to the validity of an entire contract are subject to the arbitration agreed to in the contract. Ferrer's argument was "unconvincing", the Court ruled, that state law required the exhaustion of administrative remedies before arbitration would commence.
In a 4-sentence dissent, Justice Clarence Thomas
Clarence Thomas
Clarence Thomas is an Associate Justice of the Supreme Court of the United States. Succeeding Thurgood Marshall, Thomas is the second African American to serve on the Court....
wrote, "As I have stated on many previous occasions, I believe that the Federal Arbitration Act ... does not apply to proceedings in state courts."