Abraham J. Gafni, Neutral, Mediator and Arbitrator with ADR Options. Courtesy photo ADR
That the Federal Arbitration Act (FAA), state arbitration statutes and courts generally favor arbitration provisions in contracts is well-recognized. But what if the contract containing the arbitration agreement appears on its face to be invalid, unenforceable and against public policy under state law? Will the arbitration provision similarly be deemed unenforceable? Or will the arbitration provisions, nonetheless, remain valid and enforceable, resulting in the arbitration of the dispute?Does an Arbitration Provision Survive an Unenforceable Contract?
What if the contract containing the arbitration agreement appears on its face to be invalid, unenforceable and against public policy under state law? Will the arbitration provision similarly be deemed unenforceable?
April 11, 2022 at 01:19 PM
7 minute read
Abraham J. Gafni, Neutral, Mediator and Arbitrator with ADR Options. Courtesy photo
ADR
That the Federal Arbitration Act (FAA), state arbitration statutes and courts generally favor arbitration provisions in contracts is well-recognized. But what if the contract containing the arbitration agreement appears on its face to be invalid, unenforceable and against public policy under state law? Will the arbitration provision similarly be deemed unenforceable? Or will the arbitration provisions, nonetheless, remain valid and enforceable, resulting in the arbitration of the dispute?
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