Doctor's Associates, Inc. v. Casarotto, 517 U.S. 681, 2 (1996)

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682

DOCTOR'S ASSOCIATES, INC. v. CASAROTTO

Opinion of the Court

conflicts with the FAA and is therefore displaced by the federal measure. Generally applicable contract defenses, such as fraud, duress, or unconscionability, may be applied to invalidate arbitration agreements without contravening § 2, see, e. g., Allied-Bruce, 513 U. S., at 281, but courts may not invalidate arbitration agreements under state laws applicable only to arbitration provisions, see, e. g., ibid. By enacting § 2, Congress precluded States from singling out arbitration provisions for suspect status, requiring instead that such provisions be placed upon the same footing as other contracts. Scherk v. Alberto-Culver Co., 417 U. S. 506, 511. Montana's § 27-5-114(4) directly conflicts with § 2 because the State's law conditions the enforceability of arbitration agreements on compliance with a special notice requirement not applicable to contracts generally. The Montana Supreme Court misread Volt in reaching a contrary conclusion. The state rule examined in Volt determined only the efficient order of proceedings; it did not affect the enforceability of the arbitration agreement itself. Applying § 27-5-114(4) here, in contrast, would invalidate the arbitration clause. Pp. 686-688. 274 Mont. 3, 901 P. 2d 596, reversed and remanded.

Ginsburg, J., delivered the opinion of the Court, in which Rehnquist, C. J., and Stevens, O'Connor, Scalia, Kennedy, Souter, and Breyer, JJ., joined. Thomas, J., filed a dissenting opinion, post, p. 689.

Mark R. Kravitz argued the cause for petitioners. With him on the briefs were Jeffrey R. Babbin and H. Bartow Farr III.

Lucinda A. Sikes argued the cause for respondents. With her on the brief were David C. Vladeck, Paul Alan Levy, and William C. Watt.*

Justice Ginsburg delivered the opinion of the Court. This case concerns a standard form franchise agreement for the operation of a Subway sandwich shop in Montana.

*Briefs of amici curiae urging reversal were filed for the American Council of Life Insurance by Patricia A. Dunn, Stephen J. Goodman, and Phillip E. Stano; for the International Franchise Association et al. by William J. Fitzpatrick and John F. Verhey; and for Kaiser Foundation Health Plan, Inc., by Kennedy P. Richardson.

Deborah M. Zuckerman, Steven S. Zaleznick, and Patricia Sturdevant filed a brief for the American Association of Retired Persons et al. as amici curiae urging affirmance.

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