Federal Arbitration Act (FAA)

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 […]