Arbitration Agreement Enforced Pursuant to Federal Arbitration Act
The Arkansas Supreme Court affirmed a confirmation of arbitration award in The Ruth R. Remmel Revocable Trust v. Regions Financial Corp., No. 06-616 (4/12/07).
In 2001, the Remmels family sold Rebsamen Insurance to Regions Bank. The contract contained an arbitration provision. In 2003, the Remmels brought suit against Regions and two officers of Rebsamen for conspiring to sell Rebsamen below market value. The claim alleged numerous torts and statutory violations. Under the Arkansas Arbitration Act, these claims would not be arbitrable. See A.C.A. § 16-108-201(b)(2).
The trial court determined that because the contract involved interstate commerce, the Federal Arbitration Act applied, which made all claims arbitrable. See 9 U.S.C. § 2. The trial court compelled arbitration, which was conducted by the American Arbitration Association. The arbitrator ruled in favor of Regions, and the trial court dismissed the Remmels' complaint on grounds of claim and issue preclusion.
The Supreme Court affirmed on two grounds. First, the arbitration provision covered the Remmels' claims, which showed the parties intended to arbitrate any such disputes. Second, the Remmels failed to object to the scope of the arbitration, which waived any objection they may have had.
