On Monday the Supreme Court issued Nitro-Lift Technologies, L.L.C. v. Howard, a bit of a smack down to the Oklahoma Supreme Court. The short version: Two parties had a contract dispute, the contract had a mandatory arbitration clause, one party said the entire contract was unenforceable, and the Oklahoma Supreme Court held–despite Supreme Court precedent to the contrary–that the Oklahoma courts had the power to determine the enforceability of the contract regardless of the arbitration clause.
Why? Well, because according to the Court “[t]he Oklahoma Supreme Court’s decision disregards this Court’s precedents on the FAA.” Continue reading