Delisa Roose v. Bath Fitter Tennessee, Inc.

The defendant, Bath Fitter Tennessee, Inc. (“Bath Fitter”), appeals the denial of its motion to submit its contract dispute with the homeowner to arbitration pursuant to the Federal Arbitration Act (“FAA”). The parties executed a written contract for the installation of a new shower for the homeowner, the parts for which were manufactured in Canada. Both parties signed the contract on the front page of the two-page agreement where the signature lines were provided; however, neither party signed or initialed the arbitration provision that appeared on the back of the contract. Although not explicitly stated in its order, it appears that the trial court denied arbitration based upon the Tennessee Uniform Arbitration Act (“TUAA”), which, at the time of contracting, required that arbitration clauses in residential construction contracts be separately signed or initialed. It is undisputed that the materials installed by Bath Fitter were manufactured in Canada; thus, the transaction involves interstate commerce. For that reason, the FAA applies. Because the FAA does not require signatures or initials to indicate approval of arbitration clauses and preempts conflicting state laws that invalidate otherwise valid arbitration agreements, we reverse and remand with instructions to submit the contract dispute to arbitration pursuant to the FAA and stay proceedings until arbitration is complete.