Mastick

When federal and state laws involve the same subject, their provisions may conflict. The doctrine of federal preemption may resolve the conflict. To resolve such a conflict here, we must answer the question: Does federal or state law apply? We answer with the common exasperating response often heard from judges and lawyers. It all depends.

In these related appeals, the Federal Arbitration Act (FAA) ( 9 U.S.C. §§ 1-16 ) conflicts with the California Arbitration Act (CAA) (Code Civ. Proc., § 1280 et seq.) 1 in one case but not the other. Why? As we will explain ... it all depends.

Irene Mastick brings this professional negligence action against Oakwood Capital Management, LLC, and its officers, Elliott Hollingsworth and Bruce Mandel (collectively Oakwood) and TD Ameritrade, Inc., and Paul Sullivan (collectively TD Ameritrade). Oakwood and TD Ameritrade appeal an order denying their petitions to compel arbitration. (§ 1281.2, subd. (c).) We conclude that the FAA does not preempt application of the CAA to an arbitration agreement in which the parties have agreed to be governed by California law. The FAA does preempt state law, however, when the parties have not so agreed.…