![]() ![]() In order to prevail on FAA preemption, Prime Time had to show that the subject matter of the agreement involved interstate commerce. In this case, the Agreement contained the following language, “any controversy or claim between the parties arising out of or relating to this Agreement or any alleged breach thereof, including any issues…that this Agreement or any part hereof is invalid, illegal, or otherwise voidable or void, shall be submitted to binding arbitration.” Thus, the question was which law would control the arbitration clause. Labor Code section 229 provides in relevant part, “Actions to enforce the provisions of this article for the collection of due and unpaid wages claimed by an individual may be maintained without regard to the existence of any private agreement to arbitrate.” By contrast, Section 2 of the FAA provides in relevant part, “A written provision in…a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction…shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or equity for the revocation of any contract.” At no point did Plaintiff contend that the arbitration agreement was unconscionable. Instead, the trial court held that Prime Time had waived their right to arbitrate by litigating and waiting too long before moving to compel, and further denied the motion on the grounds that Plaintiff’s complaint was based primarily on California Labor Code violations and therefore California law applied. § 1, et seq.) the trial court denied the motion without reference to the FAA argument. In a supplemental briefing to their motion, Prime Time for the first time asserted preemption under the Federal Arbitration Act (FAA 9 U.S. After 14 months of litigation, Prime Time moved to compel arbitration. ![]() Plaintiff entered into a work agreement (Agreement) with Prime Time that specified that Plaintiff was an independent contractor and not an employee and which contained an arbitration provision. Plaintiff was an airport shuttle van driver who picked up and dropped off people primarily at LAX for Defendants (Prime Time). The FAA Preempts the Labor Code Where an Arbitration Clause Provides for Arbitration of Controversies or Claims Arising Out of the Underlying Contract and the Party Seeking to Enforce Shows the Contract’s Subject Matter Involves Interstate Commerce.
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