The U.S. Supreme Court vacated that action on Monday and ruled that the state court must abide by the Federal Arbitration Act, “which is the Supreme Law of the Land.”
“State courts rather than federal courts are most frequently called upon to apply the Federal Arbitration Act … including the Act's national policy favoring arbitration,” the U.S. Supreme Court decision states.
“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 noncompetition 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.”