Thornton v. Trident Med. Ctr., LLC,
No. 3706 (S.C. Ct. App. Dec. 8, 2003)

A medical center sued a physician who left his medical practice in South Carolina before the four-year commitment set forth in his recruitment agreement had expired and, additionally, refused to repay the financial incentives he had received from the medical center. At trial, the physician claimed that the arbitration clause contained in the parties' agreement was unenforceable under state and federal law. Most importantly, the physician argued that the Federal Arbitration Act did not apply to the agreement since the contract did not affect interstate commerce. The physician's argument was based on the fact that the contract involved the provision of medical services only within the state of South Carolina. The Court of Appeals of South Carolina disagreed, holding that the arbitration clause was enforceable under the Federal Arbitration Act since the act of recruiting a physician across state lines involves and affects interstate commerce.