Terminix Int’l Co. v. Trivitt, No. CA 08-233
A terminated employee brought a suit against her former employer for defamation and outrage. The employer moved to compel the case to arbitration based on the arbitration clause included in the employee’s employment contract. The arbitration clause at issue stated that the arbitration agreement would be governed by the Federal Arbitration Act (“FAA”).
The trial court denied the motion to compel arbitration, holding that the question of arbitration was controlled by the Arkansas Uniform Arbitration Act (“AUAA”) instead of the FAA. Under the AUAA, claims for defamation and outrage are not arbitrable.
On appeal, the Arkansas Court of Appeals reversed the trial court’s decision. The court held that the FFA governed the arbitration agreement for two reasons: (1) the choice of law provision in the arbitration clause and (2) federal law preempted state law because the employment contract related to interstate commerce.
