Litigation & Arbitration,
Civil Litigation
May 16, 2024
Supreme Court: district courts must stay cases involving arbitration
Attorneys are conflicted over whether the decision strips lower courts of discretion or simply ensures the Federal Arbitration Act is implemented as Congress intended.
Federal courts do not have the authority to dismiss, rather than stay, an action involving claims subject to arbitration, according to a Thursday decision from the U.S. Supreme Court. One appellate attorney said the decision was the latest example of the court chipping away at the Federal Arbitration Act.
Justice Sonia Sotomayor, writing for a unanimous court, said Section 3 of the Federal Arbitration Act does not permit courts to dismiss cases instead of issuing a stay when a pa...
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