Supreme Court of Arkansas

Legalzoom.com, Inc., Appellant v. Jonathan McIllwain, Appellee

October 3, 20132013 Ark. LEXIS 454

Summary

The court held that the circuit court improperly denied LegalZoom's motion to compel arbitration based on allegations that LegalZoom engaged in the unauthorized practice of law. Because the alleged illegality concerned the overall contract and not any specific defect in the arbitration clause, the issue belonged initially to the arbitrator, and any state-law rule barring arbitration of the claim would be displaced by federal arbitration law. The court reversed and remanded for entry of an order compelling arbitration; Chief Justice Hannah, joined by Justice Corbin, dissented, maintaining that regulation of unauthorized practice of law remained within the state courts' exclusive authority.