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Dismissals Arbitration Agreements Arbitration

Husch Blackwell LLP

Not So Fast: The Supreme Court of the United States Holds District Courts Should Not Dismiss Lawsuits Pending Arbitration

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On May 16, 2024, the Supreme Court of the United States (“SCOTUS”) unanimously held that when a district court finds that when a lawsuit involves an arbitrable dispute and a party has requested a stay of the court proceeding...more

Locke Lord LLP

Stay or Dismiss: The Supreme Court Weighs How to Address Cases Subject to Mandatory ‎Arbitration That Are Filed in District Court

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What happens when a party required by contract to arbitrate a claim tries pursuing it in court, nonetheless? Should the case be dismissed? Or must the court hold the case on its docket while the parties seek resolution...more

Cozen O'Connor

Supreme Court Says “Stay” Means “Stay,” Not “Dismiss,” in Resolving FAA Circuit Split

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On May 16, 2024, the Supreme Court, in Smith v. Spizzirri, unanimously held that Section 3 of the Federal Arbitration Act (FAA) requires courts to stay, rather than dismiss, proceedings pending arbitration upon a party’s...more

Burr & Forman

The United States Supreme Court Requires Courts to Stay Rather Than Dismiss Actions Subject to Arbitration

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In Smith v. Spizzirri, 2024 WL 2193872 (U.S. May 16, 2024), the United States Supreme Court issued a ruling holding that courts must stay, rather than dismiss, cases that are subject to arbitration. The unanimous decision...more

Sheppard Mullin Richter & Hampton LLP

Supreme Court Holds that District Courts Must Stay – Not Dismiss – Actions Brought by Parties Subject to Binding Arbitration...

On May 16, 2024, the United States Supreme Court unanimously held that, when enforcing an arbitration clause subject to the Federal Arbitration Act (FAA), if any party requests a stay, the district court lacks discretion to...more

Perkins Coie

Supreme Court Requires Federal District Courts To Stay Cases Pending Arbitration

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On May 16, 2024, in Smith v. Spizzirri, the Supreme Court of the United States resolved a long-standing circuit split that affects motions to compel arbitration in federal court. Specifically, the Court answered whether...more

Parker Poe Adams & Bernstein LLP

Supreme Court Says Federal Courts Cannot Dismiss Suits Sent to Arbitration

Mandatory arbitration agreements remain popular for employers concerned about the cost, delays, and unpredictability of traditional litigation. The Federal Arbitration Act (FAA) requires federal courts to defer in most...more

Akerman LLP

The Supreme Court Ends Practice of Dismissing, Rather Than Staying, Lawsuits Compelled to Arbitration

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On May 16, 2024, the Supreme Court unanimously decided in Smith v. Spizziri that the Federal Arbitration Act (FAA), 9 U.S.C. § 3, divests federal district courts of any discretion to dismiss arbitrable claims that are...more

Fisher Phillips

SCOTUS Says Court Shouldn’t Have Dismissed Suit While Claims Were Arbitrated: Key Findings + 4 Proactive Steps for Employers

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When employers implement arbitration programs, they expect employees to file covered claims in arbitration – but employees often file those claims in court anyway. So, when an employee brings a claim to the courthouse that is...more

Jackson Lewis P.C.

Resolving Circuit Split, U.S. Supreme Court Says Courts ‘Shall’ Stay Cases Sent to Arbitration

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“Shall” means “shall” in the Federal Arbitration Act (FAA), a unanimous U.S. Supreme Court held in Smith v. Spizzirri, No. 22–1218 (May 16, 2024). The Court explained the language in the FAA providing a court “shall on...more

Benesch

“Stay Awhile”: Supreme Court Tells District Courts Not to Dismiss Claims Pending Arbitration

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In Smith v. Spizzirri, the Supreme Court unanimously held that federal district courts lack the power to dismiss a case sent to arbitration. Instead, under the Federal Arbitration Act, if a party moves to compel arbitration...more

Fox Rothschild LLP

U.S. Supreme Court Decides that Federal Courts Should Stay, Rather than Dismiss, Cases that Are Subject to Arbitration, If One...

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The U.S. Supreme Court has decided an issue concerning cases that are subject to arbitration that has divided the federal courts of appeals: when the claims at issue in a federal court suit are subject to arbitration, does...more

Miller Canfield

Supreme Court Holds That District Courts May Not Dismiss Lawsuits Pending Arbitration, But Instead Must Stay Them

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On May 16, 2024, the United States Supreme Court in Smith v. Spizzirri addressed whether district courts are required to stay a lawsuit pending arbitration, or if they have the discretion to dismiss the suit when all the...more

McGlinchey Stafford

SCOTUS Unanimous: Order Compelling Arbitration Requires Court to Stay, not Dismiss Case

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On May 16, 2024, the Supreme Court unanimously held that when a district court compels claims to arbitration and a party has requested a stay under section 3 of the Federal Arbitration Act (FAA), the district court is...more

Fox Rothschild LLP

In Arbitration, Shall Means Shall

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The Supreme Court issued a decision Thursday in a case named Smith, et al. v. Spizzirri, et al., that has significant import for the franchise community. Many, if not the vast majority of, franchise agreements contain clauses...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Supreme Court Questions Whether FAA Allows Courts to Dismiss Lawsuits Sent to Arbitration

On April 22, 2024, the Supreme Court of the United States conducted oral arguments in a case addressing federal courts’ handling of lawsuits after claims are compelled to arbitration. The Supreme Court seemed skeptical that...more

Foley & Lardner LLP

Should I Stay or Should I Go: Supreme Court to Consider Whether Federal Courts Can Dismiss or Must Stay Cases Pending Arbitration

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On January 12, 2024, the U.S. Supreme Court granted certiorari in Smith, et al. v. Spizzirri, et al., No. 22-1218 to consider whether a district court must stay a case — rather than dismiss it — when presented with an...more

Stikeman Elliott LLP

Meal Delivery Service’s Mandatory Arbitration Clause for Couriers Unconscionable: Manitoba Court of Appeal

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The Manitoba Court of Appeal (the “Court”) in Pokornik v. SkipTheDishes Restaurant Services Inc., 2024 MBCA 3, recently upheld a lower court decision dismissing a large online meal delivery service’s motion to stay a class...more

Fox Rothschild LLP

U.S. Supreme Court to Decide Whether Federal Courts Have Authority to Dismiss, Rather than Stay, Cases that Are Subject to...

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The U.S. Supreme Court has agreed to decide an issue concerning cases that are subject to arbitration that has divided the federal appeals courts: when the claims at issue in a federal court suit are subject to arbitration,...more

Troutman Pepper

Supreme Court to Decide Whether District Courts Have the Discretion to Dismiss Cases Subject to Arbitration

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Recently the U.S. Supreme Court granted the petition for certiorari in Smith v. Spizzirri, which presents the question of whether § 3 of the Federal Arbitration Act (FAA) requires district courts to issue a stay pending...more

King & Spalding

Morgan v. Sundance argument: Is an arbitration clause “use it or lose it”?

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It’s common for a plaintiff to file a lawsuit despite a contract dictating that the claims are governed by an arbitration clause. And it’s common for a defendant to then file a motion to stay the litigation to kick the...more

Genova Burns LLC

Sign on the Dotted Line: Enforceability of Arbitration Agreements Against Predecessor Company

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On April 30, 2021, in Hampton v. ADT, LLC, et al., the New Jersey Appellate Division vacated a September 2020 trial court order dismissing a former employee’s lawsuit and compelling him to arbitrate his Conscientious Employee...more

Fisher Phillips

SCOTUS Punts Question Of Who Decides Arbitrability, Leaving 5th Circuit Decision To Stand

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The U.S. Supreme Court just refused to address the question of whether a carve-out in an arbitration agreement exempting certain claims from arbitration also exempts those claims from the agreement’s delegation of...more

Farella Braun + Martel LLP

Arbitration Agreements in Privacy Disputes: The Wyze Decision and the CCPA

Earlier this year, a number of individuals brought a lawsuit in the United States District Court for the Western District of Washington against Washington-based company Wyze Labs, Inc (Wyze), which manufactures “smart” home...more

Akin Gump Strauss Hauer & Feld LLP

Updated LCIA Arbitration Rules (2020) issued

The London Court of International Arbitration (LCIA) has issued updated arbitration rules (the “2020 Rules”). These include some important changes, many of which are designed to address users’ concern to improve time and...more

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