Southern United Fire Insurance Co. v. Knight

In Southern United Fire Insurance Co. v. Knight, 736 So. 2d 582 (Ala. 1999) the Court held that the particular insurance transaction may, as one of several transactions, affect interstate commerce merely by providing the company with sufficient funds to issue other policies that individually involve interstate commerce. The Court declined to say that such a connection was sufficient to invoke the FAA because in Knight the record before us contained no evidence indicating that the particular transaction affected interstate commerce aside from evidence that the policy's coverage territory extended outside Alabama. Southern United had the burden to show that the transaction involved interstate commerce. There was not sufficient evidence to support Southern United's position; therefore, this Court affirmed the trial court's order denying arbitration.