Doctor’s Associates, Inc. v. Casarotto
517 U.S. 681, 116 S. Ct. 1652, 134 L. Ed. 2d 902 (1996)
Supreme Court of the United States · May 20, 1996
What the court decided
States may apply generally applicable contract defenses such as fraud, duress or unconscionability to arbitration agreements, but may not invalidate them under laws that apply only to arbitration provisions. Montana's requirement that notice of arbitration appear in underlined capitals on the first page of a contract was preempted.
Who won
The franchisor won. The Supreme Court reversed the Montana Supreme Court (8-1).
Why it matters for workers
A rule that singles out arbitration clauses, however sensible, will not invalidate one. Only defenses that would void any contract can.
Key passage: 517 U.S. 681 at 687.
Read the decision (PDF) Marked with official reporter pages for citation.
Source of the text: Library of Congress (official United States Reports, bound volume 517) — https://tile.loc.gov/storage-services/service/ll/usrep/usrep517/usrep517681/usrep517681.pdf. This page summarizes the decision in plain language; the court’s own words are in the PDF above.