FAA Preempts Statute Barring Unregistered Companies from Seeking Confirmation of Awards, 3rd Cir. Rules

PHILADELPHIA — The Federal Arbitration Act preempts a Pennsylvania state law barring unregistered companies from maintaining any “action or proceeding” in any court in the state, a federal appeals court has ruled, explaining that it interferes with the enforcement of arbitration awards.

On Feb. 23, the 3rd Circuit U.S. Court of Appeals found the FAA preempted application of the statute because it rendered the parties’ arbitration agreement unenforceable.

Generational Equity LLC, Richard Schomaker and Pitt Chemical & Sanitary Supply Holding Company Inc. were parties to a contract which contains an express arbitration provision. A dispute arose between the parties which …