Lucas

Lucas v. Gund, Inc.

Good Law
450 F. Supp. 2d 1125·2006 WL 2691453·2006 U.S. Dist. LEXIS 67869
United States District Court, Central District of CaliforniaSeptember 15, 2006CV 06-2880 ERCalifornia3,714 words

Opinion

Opinion

Rafeedie, J.

ORDER GRANTING DEFENDANT’S MOTION TO COMPEL ARBITRATION

This matter came before the Court on Defendant’s Motion to Compel Arbitration on Monday, September 11, 2006 at 10:00 a.m. The Court has read and considered the parties’ submissions and oral arguments and has reached the following conclusions:

The first step in determining what law governs the validity and effect of an arbitration provision is to determine whether the Federal Arbitration Act applies. The FAA applies to all contracts “evidencing a transaction involving commerce.” 9 U.S.C. § 2 . “Commerce” is defined as “commerce among the several States or with foreign nations.” 9 U.S.C. § 1 . This provision is to be interpreted broadly. See Circuit City Stores, Inc. v. Adams, 532 U.S. 105, 112 , 121 S.Ct. 1302 , 149 L.Ed.2d 234 (2001) (“involving commerce” interpreted as “implementing Congress’s intent ‘to exercise its commerce power to the full’ ”).

Plaintiff, Ms. Lucas, contends that the FAA applies only to “employment contracts” and because this is a “non-compete agreement” the FAA shouldn’t apply. This is a misstatement of the law. The FAA applies to all contracts involving commerce that contain an arbitration…

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