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Simmons Co. v. Deutsche Fin. Servs. Corp.

Although the Federal Arbitration Act prohibits appeals from interlocutory orders compelling arbitration, in this case the FAA's rules did not pre-empt Georgia's procedural rule allowing a preliminary appeal from an order compelling arbitration, since the Georgia rule did not defeat the FAA's objective to enforce private arbitration agreements.

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Simmons Co. appeals from the trial court’s order: 1 compelling arbitration of a claim asserted by Simmons in a suit against Deutsche Financial Services Corp. DFS, and 2 dismissing the suit with prejudice. The trial court’s order concerned an arbitration agreement enforceable under the Federal Arbitration Act FAA 9 USC § 1-16. First, we conclude that we have jurisdiction over this appeal because the FAA does not preempt Georgia procedural law allowing the appeal. Second, we find no error in the trial court’s order compelling the parties to arbitrate under the agreement and dismissing the suit with prejudice in favor of arbitration.

After Simmons sued DFS asserting a claim under the terms of a written floor plan repurchase agreement, DFS contended the agreement contained a provision requiring arbitration of the claim and moved pursuant to the FAA to compel arbitration and for dismissal or stay of the suit. Under the FAA, written agreements to arbitrate contained in contracts involving interstate commerce are valid and enforceable in federal and state courts. Allied-Bruce Terminix Cos. v. Dobson, 513 U. S. 265 115 SC 834, 130 LE2d 753 1995. The parties did not dispute that the floor plan agreement was a contract involving interstate commerce. Rather, the issue presented by DFS’ motion was whether the agreement contained a provision requiring arbitration.

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