Federal Courts Empowered to Enforce Arbitration Agreement Only If Underlying Case Qualifies for Federal Jurisdiction

After ten years of installing security systems for ADT, Telesforo Aviles used the device he installed to become a peeping-Tom. ADT fired him when it discovered his actions. The Richmond family, however, claims to have been among Aviles’s victims. They sued both ADT and Aviles in Texas state court. ADT brought a federal suit to enforce an arbitration clause in their contract. The district court dismissed the suit “for want of diversity jurisdiction.” The U.S. Court of Appeals for the Fifth Circuit vacated the dismissal and remanded it to the district court based on 9 U.S.C. § 4. Read the full case here. The attorneys at Webb Sanders and Williams provide arbitration services and contract negotiations. If you have questions regarding an arbitration clause or contracts that include such clauses contact our attorneys.