FAA Preempts State Administrative Law, U.S. High Court Rules

WASHINGTON, D.C. - In a non-reinsurance case, the U.S. Supreme Court has ruled that where there is a written arbitration agreement, the Federal Arbitration Act preempts state laws that call for contractual disputes to be heard by an administrative agency. Preston v. Ferrer, No. 06-1463 (U.S. Sup. Ct.).

On Feb. 20, the high court held 8-1 that a commission payment dispute between an entertainment lawyer and a television personality should be referred to an arbitrator rather than the California Labor Commissioner.

In June 2005, entertainment lawyer Arnold M. Preston initiated arbitration against Alex E. Ferrer, who plays "Judge Alex" on …