A Louisiana subcontractor (CMC) tried to block arbitration in Texas by claiming a Louisiana law voided out-of-state arbitration clauses in construction contracts. The federal appeals court ruled that the Federal Arbitration Act overrides Louisiana's law, forcing the dispute to arbitration in Houston as the contract required. This means subcontractors cannot use state laws to escape arbitration agreements they signed, even if the hearing happens out of state.
Arbitration clauses in construction contracts are enforceable nationwide—you cannot use your home state's laws to void them, even if they require out-of-state hearings.
Federal law (the FAA) trumps state laws that try to protect local contractors from arbitration. Read and negotiate arbitration terms carefully before signing.