Appellate Law

Trial Record Must Contain Evidence of Interstate Commerce to Support Arbitration

The Alabama Court of Civil Appeals recently reversed an order compelling arbitration because the trial court record contained no evidence, other than the contract containing the arbitration clause, to prove that the transaction involved interstate commerce.  Accent Realty, Inc. v. Snopl, No. 2080229 (Ala. Civ. App. Aug. 14, 2009).  The contract at issue involved real estate sales in Huntsville, Alabama.  The contract stated that the transactions "involved interstate commerce" and that "the contract(s) entered into by the parties concerning this property evidence [a] transaction involving and affecting commerce."  The Court held that a party moving for arbitration must present evidence supporting its contention that the underlying transaction involves interstate commerce, and the contract, standing by itself, without "evidence by affidavit or otherwise," is not sufficient to meet the movant's burden of proof.

Full post as published by Alabama Appellate Watch on August 21, 2009 (boomark / email).