1. www.themegallery.com LOGO Case: Allied-Bruce Terminix Co, Inc, v. Dobson By: Group 4

2. Facts The Dobson’s bought their dream home from the Gwin’s. Included in the sale was a lifetime termite protection plan The Dobson’s bought their dream home from the Gwin’s. Included in the sale was a lifetime termite protection plan The dream became a nightmare when the home became Infested shortly after the Dobson’s move in The dream became a nightmare when the home became Infested shortly after the Dobson’s move in Allied-Bruce attempted to treat and repair, but the Dobson’s found the efforts inadequate Allied-Bruce attempted to treat and repair, but the Dobson’s found the efforts inadequate The contract stated “any controversy or claim…shall be Settled exclusively by arbitration The contract stated “any controversy or claim…shall be Settled exclusively by arbitration The Dobson’s decided to sue Allied-Bruce Terminix and The Gwin’s. The Dobson’s decided to sue Allied-Bruce Terminix and The Gwin’s.

3. Facts: Bought a lifetime Termite Protection Plan for his home. Steven Gwin. Allied-Bruce, Sold the house and transferred the Termite Protection Plan Dobson But the house was decimated by termites shortly. SUES Allied-bruce 's action repairing and treating house) failed to satisfy Dobson. Terminix International Company a franchise of SUES

4. Alabama State Court Ruled for the Dobson’s Allied-Bruce requested A stay based on the Clause in their contract and Federal Arbitration Act Ss2 The Court denied a stay Allied-Bruce appealed The Supreme Court accepted a Write of certiorari Reversing and remanding the case Alabama Supreme Court Upheld the denial of the stay Based on a state statute, Ala.Code s8-1-41(3) More Facts

5. Points of view

6. Issue This Act can preempt state law if they have jurisdiction over the underlying Dispute, 9 U.S.C. ss3,4,8. refers to the displacing effect that federalfederal law will have on a conflicting or inconsistent state law.state Alabama Code s8-1-41(3) Makes written, predispute arbitration agreements invalid and “unenforceable”. Federal Arbitration Act Alabama State Statute

7. The Federal Arbitration Act “ written provision in any maritime transaction or a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction…shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.”9U.S.C.ss2 - Legal Concepts

8. Legal Concept: State Jurisdiction State Courts have the power and authority over all matters that the Constitution or Congress neither denies them nor gives exclusively to the federal courts Concurrent Jurisdiction If Congress does not provide and this is one of the areas federal courts have subject matter Jurisdiction the power is shared with the state courts. Federal Jurisdiction Federal courts have limited power over subject matter, the authority to judge a particular kinds of controversy. This is provided by Congress.

9. Legal Concepts The Act is intended that both federal and state Courts that have similar arbitration Cases have similar outcomes. The Act is intended that both federal and state Courts that have similar arbitration Cases have similar outcomes. The Act “is based upon and confined to the Incontestable federal foundations of Control over interstate commerce and over Admiralty. The Act “is based upon and confined to the Incontestable federal foundations of Control over interstate commerce and over Admiralty. The Act is intended to “enforce arbitration Agreements into which parties had entered,” To “place such agreements upon the same Footing as other contracts.” The Act is intended to “enforce arbitration Agreements into which parties had entered,” To “place such agreements upon the same Footing as other contracts.” “3 legal background point”

10. Interpretation, inferences and conclusion:. Interpretation of the words; “involving”, “evidencing”, “affecting”, commerce to determine if Federal law pre-empts State law. Interpreting congress’ intent when they passed the act in 1925. Examine whether the scope of a statute should expand along with the expansion of the Commerce Clause power. Understanding how and why “commerce in fact” is more faithful to the statute than “contemplation of the parties”

11. Implications/Consequences There are advantages to arbitration; It’s cheaper and faster than litigation, it has simpler procedural and evidentiary rules, It can be more flexible for scheduling of times and places of hearings, it can minimize hostilities and is less disruptive of ongoing and future business dealings. There are disadvantages, as well, having to settle for an inequitable award and having no recourse. The individual state’s losing of sovereignty. The consequence in this case was to reverse the Supreme Court of Alabama and the case is remanded for further proceedings consistent with this court’s opinion.

12. www.themegallery.com LOGO Thank you! Tammi, Han,Bean, Kexin