Legal Document

532 U.S. 105121 S.Ct. 1302149 L.Ed.2d 234 NOTICE: This opinion is subject to formal revision before publication in the preliminary print of United States Reports. Readers are requested notify Reporter Decisions, Supreme Court States, Washington, D. C. 20543, any typographical or other errors, order that corrections may be made goes press. CIRCUIT CITY STORES, INC., PETITIONER v. SAINT CLAIR ADAMS No. 99-1379. SUPREME COURT OF THE UNITED STATES Argued November 6, 2000 Decided March 21, 2001 Syllabus A provision respondent's application for work at petitioner electronics retailer required all employment disputes settled by arbitration. After he was hired, respondent filed a state-law discrimination action against petitioner, which then sued federal court enjoin state-court and compel arbitration pursuant Federal Arbitration Act (FAA). The District entered order. Ninth Circuit reversed, interpreting 1 FAA-which excludes from Act's coverage "contracts seamen, railroad employees, class workers engaged foreign interstate commerce"-to exempt contracts FAA's reach. Held: exemption confined transportation workers. Pp. 3-16. (a) provision, 2, compels judicial enforcement agreements "in ... contract evidencing transaction involving commerce." In Allied-Bruce Terminix Cos. Dobson, 513 265, interpreted 2's "involving commerce" phrase as implementing Congress' intent "to exercise [its] commerce power full." Id., 277. 3-5. (b) rejects contention word "transaction" 2 extends only commercial contracts, therefore an not "contract all. If were true, separate here issue would pointless. See, e.g., Pennsylvania Dept. Public Welfare Davenport, 495 552, 562. Accordingly, argument covered FAA must premised on language exclusion itself. 5-6. (c) statutory text forecloses construction FAA. Respondent relies Allied-Bruce's expansive reading contend 1's "engaged should have like reach, exempting falling within power. runs into insurmountable textual obstacle that, unlike language, words "any constitute residual phrase, following, same sentence, explicit reference "seamen" "railroad employees." wording thus calls maxim ejusdem generis, under clause read give effect terms employees," controlled defined those terms. Norfolk & Western R. Co. Train Dispatchers, 499 117, 129. Application generis also full accord with sound considerations bearing upon proper interpretation clause. prior cases, has term art, indicating limited assertion jurisdiction. See American Building Maintenance Industries, 422 271, 279-280. persuaded its guided fact when Congress adopted FAA, came close expressing outer limits Commerce Clause understood, see, Employers' Liability Cases, 207 463, 498. alone does provide basis adopt, "by decision, rather than amendatory legislation," Gulf Oil Corp. Copp Paving Co., 419 186, 202, beyond meaning used. While it possible might chosen different jurisdictional formulation had known later embrace less restrictive Clause, precludes defeat contracts. context found, i.e., purpose overcoming hostility further afforded narrow construction. better 1, prevailing view Courts Appeals, exempts 6-12. (d) As Court's conclusion directed text, sparse legislative history need assessed. holding attributes irrational excluding most involve commerce, workers, while including having lesser connection commerce. It permissible inference former excluded because already enacted, soon enact, statutes governing workers' relationships did wish unsettle established developing dispute resolution schemes covering commerce," rational ensure general reserving itself more specific legislation 12-14. (e) Amici argue reading, pre-empts state laws restricting use agreements. That criticism properly today's holding, but Southland Keating, 465 intended apply courts, pre-empt antiarbitration contrary. explicitly declined overrule Allied-Bruce, supra, 272, moved overturn response Allied-Bruce. Nor directly implicated this case, concerns federal, state, court. chip away indirection. Furthermore, there real benefits context, avoidance litigation costs compounded difficult choice-of-law questions necessity bifurcating proceedings where law certain types claims others. Adoption position call doubt efficacy many employers' alternative procedures, process undermining proarbitration purposes breeding statute seeks avoid it. 275. 14-16. 194 F.3d 1070, reversed remanded. ON WRIT CERTIORARI TO APPEALS FOR NINTH Kennedy, J., delivered Court, Rehnquist, O'Connor, Scalia, Thomas, JJ., joined. Stevens, dissenting opinion, Ginsburg Breyer, joined, Souter, joined Parts II III. Ginsburg, Opinion Justice Kennedy Court. Section (FAA) 9 U.S.C. 1. All one Appeals addressed interpret coverage. been Circuit, construes so whether worker transportation. applied rule instant case. We now decide construe statute, done, confine * October 1995, Saint Clair Adams job City Stores, Inc., national consumer electronics. signed included following provision: 3 "I agree I will settle previously unasserted claims, controversies arising out relating my candidacy employment, and/or cessation City, exclusively final binding neutral Arbitrator. By way example only, such include local common law, Age Discrimination Employment Act, Title VII Civil Rights 1964, amended, amendments 1991, Americans Disabilities tort." App. 13 (emphasis original). hired sales counselor City's store Santa Rosa, California. 4 Two years later, lawsuit court, asserting California's Fair Housing Cal. Govt. Code Ann. 12900 et seq. (West 1992 Supp. 1997), based tort theories California law. suit Northern California, seeking 1-16. Respondent, concluded, obligated agreement submit his employer An appeal followed. 5 pending ruled key unrelated held employment. Craft Campbell Soup 177 1083 (1999). announced Craft, between contained employment," 1070 petitioned noting Circuit's conflicts every question. McWilliams Logicon, 143 573, 575-576 (CA10 1998); O'Neil Hilton Head Hospital, 115 274 (CA4 1997); Pryner Tractor Supply 109 354, 358 (CA7 Cole Burns Int'l Security Servs., 105 1465, 1470-1472 (CADC Rojas TK Communications, 87 745, 747-748 (CA5 1996); Asplundh Tree Bates, 71 592, 596-601 (CA6 1995); Erving Virginia Squires Basketball Club, 468 F.2d 1064, 1069 (CA2 1972); Dickstein duPont, 443 783, 785 (CA1 1971); Tenney Engineering, Inc. Elec. Machine Workers Am., 450 (CA3 1953). granted certiorari resolve issue. 529 1129 (2000). 6 enacted 1925. explained, courts agreements, disposition inherited then-longstanding English practice. 270-271 (1995); Gilmer Interstate/Johnson Lane Corp., 500 20, 24 (1991). To purpose, wide range written provides "[a] maritime controversy thereafter transaction, refusal perform whole part thereof, writing existing contract, refusal, shall valid, irrevocable, enforceable, save grounds exist equity revocation contract." 2. 7 occasion 273-277, consider significance analysis began reaffirmation earlier decisions concluding substantive regulate admiralty, see Prima Paint Flood Conklin Mfg. 388 395, 405 (1967), applicable pre-emptive hostile arbitration, (1984). Relying these background principles evident reach 8 course, involves basic authorization Most conclude defined, instance, "actually movement goods Cole, 1471. we stated outset, takes interprets exception exclude comprehensive advocated amici curiae Gilmer, question registered securities representative's claim 1967, 81 Stat. 602, 29 621 seq., could submitted registration application. Concluding employment" all, found unnecessary 25, n. There no case; argued petition grant point. So reserved presented here. B contends address case favor. view, since F.3d, 1085 (concluding covers "commercial deal[s] merchant's sale[s]"). line reasoning proves too much, make superfluous. scope 562 (1990) ("Our cases express deep reluctance render superfluous provisions enactment"). proffered "evidencing furthermore, inconsistent 20 (1991), age application, arise deal sale." reconciled U.S., 277, If, then, 10 endorsing asserted breadth Referring our Allied-Bruce-concluding evidence congressional extent power-respondent two provisions, argued, coterminous; brings power, turn authority. 11 however, immediate and, obstacle. Unlike Construing fails independent statute's enumeration categories precedes it; phrases employees" if classes subsumed canon "[w]here follow enumeration, construed objects similar nature enumerated preceding words." 2A N. Singer, Sutherland Statutes Statutory Construction 47.17 (1991); 129 Under recited just pressed produce results. 12 Canons conclusive often countered, some pointing direction. For even stood uses modifiers "commerce" design enactment statutes. "affecting indicates authority Clause. operative particular Considering usual "involving," pro-arbitration "word 'involving,' 'affecting,' signals Ibid. phrases, understood said "often-found art" 273; 279-280 (1975) (the "a jurisdiction"); Jones 848, 855 (2000) (phrase "used "is sensibly mean active purposes, merely passive, passing, past commerce"). assess manner here, large decisions. Lopez, 514 549, 556 (1995) (noting beginning 1937 "ushered era jurisprudence greatly expanded Clause"). When 1925, reasons, art jurisdiction; contrary, said, understood. 498 (1908) (holding unconstitutional Employers (FELA) employees "every carrier trade commerce"); Second 223 48-49 (1912); cf. Illinois Central Behrens, 233 473 (1914) dicta amended FELA's carriers "while engaging power). Were mode prevail, take account elaborated date what means now. 14 variable standard common, contradict bring instability interpretation. afford significance, construing circumstance predated shifts cases. FTC Bunte Brothers, 312 349 (1941), rejected Trade Commission 38 719, 15 45 1914, Bros., 350-351. entertained pair decided 1974 Term concerning Clayton 731, 18 another 1914 enactment. Maintenance, 277-283; 199-202 (1974). "means flow corporations activities power." 283; Oil, 202 (expressing "argument practical Act" justify "radical expansion defines"). accept contentions used rests foundation, affords objective consistent defines statute. say interpretations depending adoption, became ignores reason why first place: plain narrower open-ended formulations 195 "appears denote persons unwieldy Congress, litigants deconstruct year 16 rejecting given broader justified simply 1925 1938, do suggest "necessarily uniform whenever Congress." noted: "The task marking exercised constitutional over devising abstract formula." A. B. Kirschbaum Walling, 316 517, 520 (1942). must, purpose. These considerations, discussed above, location after enumerated, undermines attempt sweeping, And "seeks broadly overcome agreements," 272-273, concluded counseled favor gives abandon precise 17 sum, followed review, historical arguments respecting understanding insubstantial, us decision course speculate C today provision. Ratzlaf 510 135, 147-148 (1994) ("[W]e resort cloud clear"). note, record quite sparse. points either committee report addressing nor mention during debate floor House Senate. Instead, places greatest reliance testimony Senate subcommittee hearing suggesting added objections president International Seamen's Union America. Hearing S. 4213 4214 Subcommittee Committee Judiciary, 67th Cong., 4th Sess., (1923). Legislative problematic draw inferences duly appointed committees Congress. becomes far consult sources still steps removed interest group sponsored opposed legislation. Cf. Kelly Robinson, 479 36, 51, (1986) ("[N]one statements Member they official decline statements"). ought attribute motives lobbied proposal-even assuming can determined, point doubtful both political forces how best embodiments know 19 "Under petitioner's 1," contends, "those assuredly [the] coverage; direct come affirmative excluded." Brief (emphases paradox whom apparent. precisely undoubted govern them. time passed, providing seamen their employers, Shipping Commissioners 1872, 262. adopted, moreover, grievance procedures existed Transportation 1920, 300-316, 41 456, passage mediation labor imminent, Railway Labor 1926, 44 577, 46 651 (repealed). reasonable assume simple 21 demonstrated concern necessary role free explains linkage specific, identified portion sentence. (Posner, J.). Indeed, follow, amendment 1936 air 49 1189, 181-188. III 22 Various amici, attorneys object intrudes policies States. They requiring restrict limit ability employers enter permitted, traditional regulating relationships, prohibit contracting right pursue 23 target criticism. relevant instead (1984), id., 16. Southland's continuing vitality consideration 272; 282 (O'Connor, concurring). indirection, especially adoption theory advanced Not Justices who join agreed 284 (Scalia, dissenting); 285 (Thomas, dissenting), incongruous conventional implement unconventional undo noted Southland, note done parties exempted set forth true provisions. clear supposition advantages somehow disappear transferred context. 30-32. allow litigation, benefit importance smaller sums money (and accompanying burden Courts) relationship, Egelhoff Egelhoff, post, "choice-of-law problems" affecting administration ERISA plans), bifurcation considerable complexity uncertainty urged introduce enforceability Nation's "breeding it." enforced without contravening enactments giving protection prohibited law; " '[b]y agreeing arbitrate claim, party forgo rights statute; submits arbitral, judicial, forum." 26 (quoting Mitsubishi Motors Soler Chrysler&nbhyph;Plymouth, 614, 628 (1985)). involved denied awaiting outcome matter, though, revisit 25 foregoing judgment remanded opinion. 27 ordered. 28 Breyer join, Souter joins III, dissenting. cogently explained parsimonious (FAA Act) believe heavy views expressed decade makes appropriate comment three chapters venerable 30 enforceable clean slate, good neither "maritime transaction" encompass contracts.1 31 extensive well-documented, enforce commonly original bill drafted Commerce, Trade, Commercial Law Bar Association (ABA) "the extension principle arbitration." Report Forty-third Annual Meeting ABA, Rep. 75 (1920) added). drafted, Members "simply provid[e] thing, opportunity admiralty contracts." 65 Cong. Rec. 1931 (1924) (remarks Graham) added).2 surprise, introduced 1922,3 contain definition transactions" underscored character proposed bill.4 drafting records deliberations ultimate contains proponents 32 Nevertheless, representatives organized labor, notably America,5 authorize clauses collective-bargaining agreements.6 objections, chairman ABA emphasized Judiciary "[i]t act referring all," observed "if your honorable feel danger add 'but nothing herein commerce.' 9. Similarly, supporter bill, Secretary Herbert Hoover, suggested "[i]f objection appears inclusion law's scheme, well stating 14. reintroduced next session Hoover's exclusionary 1,7 eliminated labor's opposition law.8 33 today. History amply supports proposition uncontroversial confirmed interested ever expected particularly ironic, therefore, provided sole justification refusing natural reading. Playing ostrich substantial behind amendment, ante, provision"), reasons vacuum exemption" "would pointless," 5. But contrary suggestion, "pointless" adopt clarifying eliminate bill. Moreover, majority's squarely contradicted approach Bernhardt Polygraphic America, 350 198, 200, 201, (1956), "evidence 'a commerce' Act," "reach event 'any exceptions Act." 34 irony cramped inserted fully responded organizations expressly Today, fulfills original-and originally unfounded-fears essentially rewriting solely "seamen, 11. contrast, 35 quarter century exclusion. split question, least Third, Fourth, Fifth Circuits answering affirmative,9 First Sixth negative.10 turned occupied. assumption seemed be, early on, "was deliberately worded [FAA] Gatliff Coal Cox, 142 876, 882 (1944). 36 endorses today-namely, 1-was until 1954, Third Electrical Workers, 450, 452 (1953). significantly, shortly Fourth Circuit. Miller Metal Products, 215 221, 224 (1954). conflict among persisted 1950's suggests inappropriate attach much weight recent opinions 3, 4. 37 Even important conflict, tried debate. Textile Lincoln Mills Ala., 353 448 (1957), union's brought 301 Management Relations 1947 (LMRA), agreement. union implicitly support latter argument, asked "contrac[t] workers.11 relied LMRA, authorizes strongly implies Frankfurter, present issues. 466-468 (dissenting opinion).12 Frankfurter's description rejection applicability suffice establish precedent unquestionably reveals own Act. Marshall subscribed 1,13 follows endorsed adopts. fact, control seem me entitled respect number repeatedly refers. 39 Times changed. Judges 19th disfavored private attitude, last several decades pushed pendulum attitude policy favors arbitration.14 strength preference echoed relies.15 sense, standing shoulders little expectations 17-21 (1984) (Stevens, concurring part); 21-36 dissenting). 40 necessarily wrong put imprint look raw enables disregard countervailing enacting remain valid today, misuses indicates, potential disparity bargaining individual source feared require unfair concern, out, 6-7, underlay mandatory unrepresented employee, skews preferences. illustrates wisdom observation Aharon Barak Israel. He perceptively "minimalist" judge "who holds learned language" discretion seek guidance reliable source." Judicial Discretion 62 (Y. Kaufmann transl. 1989). method uninformed, hence unconstrained, result court's things very enacted. sad 42 respectfully dissent. NOTES: Doing so, event, precluded 265 (1995). evinces fall category however construed, light detailed 2-5. Consistent understanding, Mills, House, "provides disagreement [en]force portions Rec., 11080 Senate, New York Chamber business introduction testified needed enable men expeditiously economically, reduce congestion State courts." (1923) (Hearing) (letter H. Commerce) ("I been, you know, impressed urgent act. hands country unanimously approved" Houses added)). 4214, Sess. (1922) (S. 4214); 13522, (H. 13522). 64 732, 797 (1922). "[M]aritime "charter parties, bills lading water carriers, wharfage, supplies furnished vessels repairs vessels, seamen's wages, collisions, matters which, controversy, embraced jurisdiction." 1; Although illustrative draft "commerce nations, Territory Columbia, another, nation, Columbia nation." Considered together, definitions nonmaritime transactions, remotely exception, "seamen's wages," exclusions added. Joint Hearings 1005 646 Subcommittees Committees 68th 1st (Joint Hearings); infra, stated: "[T]his reintroduction forced involuntary freeman through necessities induced sign. Will signed? Esau agreed, hungry. desire live caused slavery begin continue. With growing hunger modern society, few able resist. personal seaman, wife children man surely tempt them sign, sundry 'Interstate Foreign Commerce.' Proceedings 26th Convention America 203-204 448, 466-467, (1957) (Frankfurter, postenactment Executive Council Federation reported: "Protests 'nothing although sponsors intention disputes." 45th 52 (1925). Ala. 230 81, 86 1956), rev'd grounds, (1957); 1954); Electric Motor Coach Employees Greyhound Lines, 192 310, 313 1951). Apparently, shared view. Mercury Refining 187 980, 983 1951); Shirley-Herman Hod Carriers, 182 806, 809 1950). General 85, 100 aff'd 547 Hoover Express Teamsters, 217 49, 53 1954). Petitioner O.T. 1956, 211, pp. 53-59. words, "Naturally enough, find rejection, though explicit, availability silent treatment generally, specifically denies decree remedy 'contracts employment,' available, hardly spin empty darkness 301. recognizing passed saw fit 466 opinion). 38-41 (1991) Rodriguez de Quijas Shearson/American Express, 490 477 (1989); McMahon, 482 220 (1987); 614 (1985); (1984); Moses Cone Memorial Hospital Constr. 460 (1983); 395 (1967). Hosp., 1997) ("The circuit uniformly reasoned strong requires section exemption. Thus, actually goods"). 43 Whatever Congress's implied thought subsequently consequence, ways One say, example, 1925; exercising jurisdiction conception possibility ambit frozen time, behooving amend desired expand second elastic go go, whatever time. (1995), sensible legislated cover apt extend similarly exemption, receive correspondingly evolutionary keep pace enhanced tempting answer yes, sauce goose gander, sobering realize have, albeit fits starts 6-7 opinion),1 overwhelmingly accepted (opinion Court) (citing cases). majority puts imprimatur Appeals. arrayed grow parallel expanding reflects minority faces hurdles, each textually apparent face First, (a commerce") Second, . catchall placed exemptions placement possibly excused arbitrating virtue resemble perhaps being handle move shipped internationally. 47 Neither hurdle turns bar, however. inconclusive weaker reject certainly inapposite, misunderstood. 48 Is plenary deals detailing transactions commerce?" easy insofar limited. meant allows addressed. examined showed intention, long quintessential expression 273-274; Wickard Filburn, 317 111 Again looking about closely confined) indicated Compare 496, (suggesting regulation relations operation company's clerical force not), Hammer Dagenhart, 247 251, 271-276 (1918) (invalidating "necessary effect" "regulat[ing] hours factories mines States"). using in" exclusion, place, clearly legislate hilt level. borne statement then-Secretary scheme." Sales Contracts Sell Interstate Arbitration: (hereinafter al.). 50 cites 271 (1975), 186 (1974), acquired restricted immune tampering Ante, 9-10. none cited dealt petrified grow. unwillingness four corners determine 'have Congress,' 277). provision") with, 279-283 (examining agency resolving 51 reason, accordingly coherent whole, King St. Vincent's 502 215, 221 treating keeping generally. cleared easily still, shown how. Like it, finds great generally phrased stand alone, occurs end sequence exemptions: sees interpretive is, one, examples sort specifics. Here, transporters, employed retail seller. canons, fallback, aside. E.g., (1991).2 imputing something odd working brain took care bar obviously handlers "engaged" obvious ways, whose anticipated uncertain sense coverable prove expensive unfavorable lack resist prospective insist one.3 suggestion respond "objection 54 tries deflect anomaly rail indicate likely future. 13-14. explanation, anomaly. On explanation tells referred sea workers; but, almost broad terms, squeeze name generis. 55 spoken subjects sailors tailored circumstances mentioning specifically. making references special sure modify exactly aimed; applying targeted worry contemplated. uncovered legislation, write wrote regulate. before, existence emphasizing negate otherwise unqualified generis.4 history, generis; instead, specifics ex abundanti cautela, abundance caution, Fort Stewart Schools FLRA, 641, (1990). 56 Nothing stands consistently coherently. Compare, Expert 600-601 1995) (construing narrowly), Willis Dean Witter Reynolds, 948 305, 311-312 1991) (concluding, dicta, excluded), 1944) ("[T]he contracts"). 1083, 1086, (CA9 1999) intracircuit inconsistency). What more, triggered Garcia 469 70, 74-75 Gooch 297 124, 128 (1936), by, inter alia, Watt Nuclear, 462 44, (1983). practice upside down, irrelevant. 12. Senator Walsh FAA: ' trouble matter really voluntary says, right, leave Well, except sign surrenders tribunal confidence all.' al., 5, "coal minerals" "[t]here coal 'and minerals' reserve substances generis," namely wanted treated differently minerals."

Classification Label: 6