Bradley

Bradley v. Harris Research, Inc.

Caution
275 F.3d 884·2001 WL 1658728
United States Court of Appeals for the Ninth CircuitDecember 28, 2001No. 00-16021California4,074 words

Opinion

Lead Opinion

Tashima, J.

Harris Research, Inc. (“HRI”) appeals an order of the district court denying its motion for summary judgment, dismissing the case, and ordering the parties to participate in private arbitration. A franchise agreement between HRI and Appellees Michael and Patricia Bradley provided for arbitration of disputes to take place in Utah. HRI contends that the Federal Arbitration Act (“FAA” or “Act”) preempts Cal. Bus. & Prof. Code § 20040.5 , the California statute on which the district court relied to compel arbitration in California, rather than in Utah. We have jurisdiction pursuant to 28 U.S.C. § 1291 . See Interactive Flight Techs., Inc. v. Swissair Swiss Air Transp. Co., 249 F.3d 1177, 1179 (9th Cir.2001) (concluding that an order of dismissal compelling arbitration was a final judgment). We conclude that the FAA preempts § 20040.5; accordingly, we reverse and remand.

BACKGROUND

HRI is a Utah corporation that franchises Chem-Dry carpet cleaning franchises. In June 1983, the Bradleys acquired two Chem-Dry franchises and executed two Franchise License Agreements in connection therewith (“1983 Agreements”). Each of the 1983 Agreements provided that, “[fjollowing the initial five (5)…

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