Nitro-lift Technologies, L.L.C. v. Eddie Lee Howard et al. (568 U.S. 17)

U.S. Supreme Court · decided November 26, 2012 · Supreme Court Database (Spaeth)

Citation
568 U.S. 17 · 133 S. Ct. 500
Decided
November 26, 2012
Term
October Term 2012
Vote
9–0
Issue area
Unions
Disposition
Vacated and remanded
Outcome
Petitioning party won
Ideological direction
Conservative

Opinion excerpt

Per Curiam. State courts rather than federal courts are most frequently called upon to apply the Federal Arbitration Act (FAA or Act), 9 U. S. C. § 1 et seq., including the Act’s national policy favoring arbitration. It is a matter of great importance, therefore, that state supreme courts adhere to a correct interpretation of the legislation. Here, the Oklahoma Supreme Court failed to do so. By declaring the non-competition agreements in two employment contracts null and void, rather than leaving that determination to the arbitrator in the first instance, the state court ignored a basic tenet of the Act’s substantive arbitration law. The decision must be vacated. * * * This dispute arises from a contract between petitioner Nitro-Lift Technologies, L. L. C., and two of its former employees. Nitro-Lift contracts with operators of oil and gas wells to provide services that enhance production. Respondents Eddie Lee Howard and Shane D. Schneider entered a confidentiality and noncompetition agreement with Nitro-Lift that contained the following arbitration clause: “‘Any dispute, difference or unresolved question between Nitro-Lift and the Employee (collectively the “Disputing Parties”) shall be settled by arbitration by a single arbitrator mutually agreeable to the Disputing Parties in an arbitration proceeding conducted in Houston, Texas in accordance with the rules existing at…

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