Southland Corp. et al. v. Keating et al. (465 U.S. 1)
U.S. Supreme Court · decided January 23, 1984 · Supreme Court Database (Spaeth)
- Citation
- 465 U.S. 1 · 104 S. Ct. 852
- Decided
- January 23, 1984
- Term
- October Term 1983
- Vote
- 6–3
- Majority author
- Justice Burger
- Issue area
- Economic Activity
- Disposition
- Reversed and remanded
- Outcome
- Petitioning party won
- Ideological direction
- Conservative
Opinion excerpt
Chief Justice Burger delivered the opinion of the Court. This case presents the questions (a) whether the California Franchise Investment Law, which invalidates certain arbitration agreements covered by the Federal Arbitration Act, violates the Supremacy Clause and (b) whether arbitration under the federal Act is impaired when a class-action structure is imposed on the process by the state courts. r*H Appellant Southland Corp. is the owner and franchisor of 7-Eleven convenience stores. Southland’s standard franchise agreement provides each franchisee with a license to use certain registered trademarks, a lease or sublease of a convenience store owned or leased by Southland, inventory financing, and assistance in advertising and merchandising. The franchisees operate the stores, supply bookkeeping data, and pay Southland a fixed percentage of gross profits. The franchise agreement also contains the following provision requiring arbitration: “Any controversy or claim arising out of or relating to this Agreement or the breach hereof shall be settled by arbitration in accordance with the Rules of the American Arbitration Association . . . and judgment upon any award rendered by the arbitrator may be entered in any court having jurisdiction thereof.” Appellees are 7-Eleven franchisees. Between September 1975 and January 1977, several appellees filed individual actions against…
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