Allied-bruce Terminix Companies, Inc., and Terminix International Company v. G. Michael Dobson et al. (513 U.S. 265)

U.S. Supreme Court · decided January 18, 1995 · Supreme Court Database (Spaeth)

Citation
513 U.S. 265 · 115 S. Ct. 834
Decided
January 18, 1995
Term
October Term 1994
Vote
7–2
Majority author
Justice Breyer
Issue area
Federalism
Disposition
Reversed and remanded
Outcome
Petitioning party won
Ideological direction
Liberal

Opinion excerpt

Justice Breyer delivered the opinion of the Court. This case concerns the reach of § 2 of the Federal Arbitration Act. That section makes enforceable a written arbitration provision in “a contract evidencing a transaction involving commerce.” 9 U. S. C. § 2 (emphasis added). Should we read this phrase broadly, extending the Act’s reach to the limits of Congress’ Commerce Clause power? Or, do the two italicized words — “involving” and “evidencing” — significantly restrict the Act’s application? We conclude that the broader reading of the Act is the correct one, and we reverse a State Supreme Court judgment to the contrary. I In August 1987, Steven Gwin, a respondent who owned a house in Birmingham, Alabama, bought a lifetime “Termite Protection Plan” (Plan) from the local office of Allied-Bruce Terminix Companies, a franchise of Terminix International Company. In the Plan, Allied-Bruce promised “to protect” Gwin’s house “against the attack of subterranean termites,” to reinspect periodically, to provide any “further treatment found necessary,” and to repair, up to $100,000, damage caused by new termite infestations. App. 69. Terminix International “guarantee^] the fulfillment of the terms” of the Plan. Ibid. The Plan’s contract document provided in writing that “any controversy or claim .. . arising out of or relating to the interpretation, performance or breach of any…

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