Allied-Bruce Terminix Co. v. Dobson (1994)
- Docket
- 93-1001
- Decided
- 1994-01-01
Summary
Question: Should the Federal Arbitration Act, making an arbitration provision enforceable in contracts "evidencing a transaction involving commerce," be applied broadly? Conclusion: Yes. In a 7-2 opinion delivered by Justice Stephen G. Breyer, the Court held that the Federal Arbitration Act applied to all disputes involving commerce, and thus the arbitration clause was valid and enforceable. The Court reasoned that the word "involving" in section 2 of the Act signaled an intent to exercise Congress' commerce clause power to the full and that section 2 is to be read requiring only that the "transaction" in fact "involve" interstate commerce, even if the parties did not contemplate an interstate commerce connection. Justice Sandra Day O'Connor filed a concurring opinion. Justices Scalia and Clarence Thomas filed dissenting opinions.