Federal Arbitration Act (FAA)

Federal Courts Must Grant Requests for Stays Pending Arbitration

Last week, in Smith v. Spizzirri, the United States Supreme Court unanimously held that a federal court must grant a party’s request for a stay while arbitration is pending. In Spizzirri, a group of delivery drivers sued their current and former employers in Arizona state court. The plaintiffs alleged they were misclassified as independent contracts and were denied benefits. The defendants removed the case to federal court. The defendants also moved to compel arbitration and dismiss the suit.

Plaintiffs agreed their claims are arbitrable but argued the Federal Arbitration Act (FAA) only requires the court to stay, […]

By Stuart Davis|2024-05-21T09:20:05-04:00May 21st, 2024|Practice Areas: Class Action|Topics: Arbitration, Circuit Split, Federal Arbitration Act (FAA), Federal Court, Judicial Rulings, Legal Decision, Legal Process, Litigation, Smith v. Spizzirri, Supreme Court|

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The Supreme Court Upholds the Automatic Stay During an Arbitration Appeal

On June 23, 2023, the Supreme Court held, in Coinbase, Inc. v. Bielski, that the Federal Arbitration Act (FAA) imposes an “automatic stay” on litigation while an appellate court decides whether the parties must resolve their dispute through arbitration. The decision ends a federal circuit split in which some courts have required class action defendants to bear the cost of seeking to enforce an arbitration clause while litigating the underlying claims in federal court. This ruling eliminates such unnecessary expense because it requires federal courts to pause litigation and allow the appellate court to determine whether […]

By Stuart Davis|2023-06-27T22:56:36-04:00June 27th, 2023|Practice Areas: Class Action|Topics: Coinbase, Federal Arbitration Act (FAA)|

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