Shepard

The sole issue in this appeal is whether the Federal Arbitration Act (FAA), which makes valid and enforceable any arbitration provision in a contract “evidencing a transaction involving commerce,” preempts California law allowing a purchaser of real property to bring an action in court for construction and design defects, notwithstanding an agreement to arbitrate. Plaintiff John T. Shepard purchased a house within the Cottonwood subdivision from defendant, Edward Mackay Enterprises, Inc. (Mackay). Plaintiff filed a lawsuit after a leak from an underground plumbing pipe caused extensive damage to the home and its contents. The trial court denied defendants’ motion to compel arbitration.

We shall conclude the FAA preempts contrary California law, and that defendants’ evidence is sufficient to show the transaction at issue involved interstate commerce. We shall reverse the order of the trial court.

FACTUAL AND PROCEDURAL BACKGROUND

Plaintiff claims that a plumbing pipe installed by defendants Mackay and Cottonwood Development, and damaged by their subcontractor, Gary Lewis Construction, leaked and damaged plaintiff’s home and possessions. Plaintiff alleged “the…