Preston v. Ferrer (2007)
- Docket
- 06-1463
- Decided
- 2007-01-01
Summary
Question: Must a contract dispute to go arbitration pursuant to the document's arbitration clause when an administrative agency has exclusive jurisdiction over the disputed issue? Conclusion: The Court disagreed with the California Labor Commissioner's assessment and allowed the arbitration to continue. Justice Ruth Bader Ginsburg, writing for an 8-1 majority, stated that the California law granting exclusive jurisdiction to the Labor Commission was superseded by the Federal Arbitration Act because the parties to this case had agreed to arbitrate any contractual disputes. Therefore, it was the function of an arbitrator, not the Labor Commission, to determine the legality of the management contract. Justice Clarence Thomas issued the sole dissent.