Jottings By An Employer's Lawyer |
Wednesday, February 26, 2003
Alabama and the Federal Arbitration Act
The parties to the contract containing the arbitration provisions were an Alabama natural person, Webb, and an Alabama domiciliary corporation, Bill Penney Motor Company. The transaction evidenced by the contract was Webb's performing menial chores in a cleanup shop in Alabama. The alleged assault cannot be deemed a transaction evidenced by Webb's employment contract. Bill Penney Motor Company has not submitted any evidence that Webb's employment or chores substantially, or even detectably, affected any of the contracts or transactions between Bill Penney Motor Company and persons or entities outside Alabama.If this is the standard, it seems likely that many arbitration agreements required as a condition of employment in Alabama may not be enforced. At a minimum, employers' counsel will have to work to make a very focused showing that the FAA is applicable. Labels: arbitration
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