Summary
The Michigan Court of Appeals held that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act applies only to arbitration agreements involving a transaction affecting interstate commerce under the Federal Arbitration Act. The court vacated the trial court’s denial of summary disposition because the trial court had not determined whether the underlying medical-services contract involved commerce. The case was remanded for further proceedings, including consideration of the plaintiff’s alternative arguments.
Holdings
- The EFAA applies only to arbitration agreements in contracts evidencing a transaction involving commerce within the meaning of 9 U.S.C. §§ 1 and 2; it does not apply more broadly to purely intrastate transactions merely because the dispute concerns sexual assault or sexual harassment.
- The trial court erred by holding the arbitration agreement invalid under the EFAA without first determining whether the underlying contract evidenced a transaction involving commerce under 9 U.S.C. § 2.
Questions Presented
- Whether the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, 9 U.S.C. § 402(a), applies to an arbitration agreement when the underlying transaction has no demonstrated connection to interstate commerce.
- Whether the trial court erred by applying 9 U.S.C. § 402(a) without first determining whether the arbitration agreement concerned a transaction involving commerce under 9 U.S.C. § 2.
Disposition
vacated
Cases Cited (12)
- M'Culloch v. Maryland, 17 U.S. (4 Wheat.) 316, 405 (1819)(followed)
- Galea v. FCA US LLC, 323 Mich. App. 360, 368; 917 N.W.2d 694 (2018)(followed)
- Bautista v. Star Cruises, 396 F.3d 1289, 1296 (11th Cir. 2005)(noted)
- GE Energy Power Conversion France SAS v. Outokumpu Stainless USA, LLC, 590 U.S. 432, 437 (2020)(noted)
- Kauffman v. The Chicago Corp., 187 Mich. App. 284, 286; 466 N.W.2d 726 (1991)(followed)
- Southland Corp. v. Keating, 465 U.S. 1, 11 (1984)(followed)
- New Prime Inc. v. Oliveira, 586 U.S. 105, 111 (2019)(followed)
- CompuCredit Corp. v. Greenwood, 565 U.S. 95, 98 (2012)(followed)
- Citizens Bank v. Alafabco, Inc., 539 U.S. 52, 56-57 (2003)(followed)
- Allied-Bruce Terminix Cos. v. Dobson, 513 U.S. 265, 281 (1995)(followed)
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Cited In (0)
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Court Document
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