Herron v. CENTURY BMW
395 S.C. 461
| S.C. | 2011Background
- Remanded from the U.S. Supreme Court to reconsider Herron v. Century BMW in light of Concepcion; the decision is based on state-law grounds ( Dealers Act) and not on preemption.
- Appellant Century BMW moved to compel arbitration; SC affirmed denial of arbitration on state-law grounds.
- Century BMW petitioned for rehearing arguing FAA preempts state-law policy against class arbitration; rehearing denied.
- Supreme Court granted certiorari, vacated, and remanded to consider preemption under Concepcion; Respondents argued lack of preservation.
- On remand, Court reinstates original opinion and holds preemption argument was not preserved in state proceedings; issue barred by preservation rules.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the FAA preemption issue preserved? | Herron urged preemption via FAA and Concepcion. | Century BMW argued preemption was preserved through filings referencing arbitration policy. | Preemption was not preserved; procedurally barred. |
| Did issue-preservation rules allow consideration of the federal preemption argument on appeal? | Herron contends federal issue raised to SC via petitions. | Century BMW contends preservation was inadequate. | Issue not preserved; waived on appeal. |
| Should the Court revisit preemption in light of Concepcion? | Herron/supreme review should consider FAA preemption. | Respondents argue no preserved basis to revisit. | No reconsideration; original state-law basis reinstated. |
Key Cases Cited
- Adams v. Robertson, 520 U.S. 83 (1997) (state-law questions first presented to state courts)
- Cardinale v. Louisiana, 394 U.S. 437 (1969) (state court first opportunity to address constitutional questions)
- Concepcion v. AT&T Mobility LLC, U.S. , 131 S. Ct. 1740 (2011) (FAA preemption and class arbitration debates post-Concepcion)
- Webb v. Webb, 451 U.S. 493 (1981) (federal issues not ruled on by highest state court may limit Supreme Court review)
- Cardinale, supra, 394 U.S. 437 (1969) (precedent on certiorari and state-ground considerations)
- I'On, L.L.C. v. Town of Mt. Pleasant, 338 S.C. 406, 526 S.E.2d 716 (2000) (issue preservation guidance in SC)