Supreme Court Hears Argument in its SecondSignificant Arbitration Case this Term
On Monday, the Supreme Court heard oral arguments in the so-called "Judge Alex" case, Preston v. Ferrer, No. 06-1463 (U.S.). The second major arbitration case this term, it involves a contract dispute between Alex Ferrer, a former Florida judge and the star of the "Judge Alex" show on Fox, and Mr. Preston, his one-time manager. Preston sought to arbitrate the matter, but Ferrer claimed that Preston had acted as a "talent agent," meaning the dispute would go to the state Labor Commissioner under California law. The case, then, revolved around whether the Federal Arbitration Act preempted California law, requiring arbitration in the matter. If Judge Alex prevails, the Court would be diverging from past decisions vesting the arbitrator with the power to decide whether a case should be arbitrated when the arbitration clause itself is not independently challenged.