MHC Kenworth-Knoxville/Nashville v. M & H Trucking, LLCAnnotate this Case
This case arose from the sale of a truck by Appellant to Appellee. The parties executed a document titled "customer sales order" formalizing the deal that contained a binding arbitration provision. The provision failed to require the arbitration to be held in Kentucky but stated that the Federal Arbitration Act (Act) governed its interpretation and enforcement. After the truck was delivered, Appellee filed suit against Appellant, alleging fraud and intentional misrepresentation. The trial court denied Appellant's motion to compel arbitration under the arbitration clause. The court of appeals affirmed, concluding that Kentucky courts have no jurisdiction to enforce an arbitration agreement unless the agreement provides that the arbitration will occur in Kentucky. The Supreme Court reversed, holding (1) Appellant made a prima facie showing of an agreement requiring arbitration of the dispute between the parties; and (2) because that agreement stated that the Act controls, the circuit court had jurisdiction to enforce it, unless Appellee could meet its burden to show there was no valid agreement.