{"id":901573,"date":"2023-09-05T15:59:11","date_gmt":"2023-09-05T21:59:11","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=901573"},"modified":"2023-09-05T15:59:14","modified_gmt":"2023-09-05T21:59:14","slug":"compel-arbitration-stays-underlying-litigation","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/compel-arbitration-stays-underlying-litigation\/","title":{"rendered":"Construction Litigation\u00a0Roundup: \u201cStop – In the Name of the Law!\u201d"},"content":{"rendered":"\n

Daniel Lund III | Phelps Dunbar<\/a><\/p>\n\n\n\n

In a 5-4 decision, the United States Supreme Court settled a split among the federal appellate circuits on whether appeal of a district court refusal to compel arbitration<\/a> stays the underlying litigation in the district court.<\/p>\n\n\n\n

Having been denied relief by the district court on its motion to compel arbitration, plaintiff filed an interlocutory appeal to the Ninth Circuit under the Federal Arbitration Act, 9 U. S. C. \u00a716(a), which authorizes an interlocutory appeal from the denial of a motion to compel arbitration. Plaintiff asked the district court to stay its proceedings pending resolution of the interlocutory appeal. The district court refused, and the Ninth Circuit also declined to stay the lower court proceedings pending appeal.<\/p>\n\n\n\n

Characterizing its ruling is one employing \u201ccommon sense,\u201d the United States Supreme Court wrote:<\/p>\n\n\n\n

\u201cSection 16(a) does not say whether the district court proceedings must be stayed. But Congress enacted \u00a716(a) against a clear background principle prescribed by this Court\u2019s precedents: An appeal, including an interlocutory appeal, \u2018divests the district court of its control over those aspects of the case involved in the appeal.\u2019 Griggs v. Provident Consumer Discount Co., 459 U. S. 56, 58 (1982). That Griggs principle reflects a longstanding tenet of American procedure. \u2026 The Griggs principle resolves this case. Because the question on appeal is whether the case belongs in arbitration or instead in the district court, the entire case is essentially \u2018involved in the appeal.\u2019 459 U. S., at 58. As Judge Easterbrook cogently explained, when a party appeals the denial of a motion to compel arbitration, whether \u2018the litigation may go forward in the district court is precisely what the court of appeals must decide.\u2019 \u2026 In short, Griggs dictates that the district court must stay its proceedings while the interlocutory appeal on arbitrability is ongoing. <\/p>\n\n\n\n

\u201cMost courts of appeals to address the question in the \u00a716(a) context have reached that same conclusion.\u201d <\/p>\n\n\n\n

The dissent noted that the \u201cmandatory-general-stay rule for interlocutory arbitrability appeals comes out of nowhere,\u201d and fails to allow for a district court to balance all relevant interests when deciding whether or not to stay a matter. The dissent further complained that a party will \u201cnow receive a stay even when, according to the usual equitable analysis, there is no good reason for one.\u201d<\/p>\n\n\n\n

Coinbase, Inc. v. Bielski (slip opinion June 23, 2023)<\/em><\/a><\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Daniel Lund III | Phelps Dunbar In a 5-4 decision, the United States Supreme Court settled a split among the federal appellate circuits on whether appeal of a district court refusal to compel arbitration stays the underlying litigation in the district court. Having been denied relief by the district court on its motion to compel… Continue reading Construction Litigation\u00a0Roundup: \u201cStop – In the Name of the Law!\u201d<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[41],"tags":[9895,42],"class_list":["post-901573","post","type-post","status-publish","format-standard","hentry","category-arbitration","tag-advise-consult","tag-arbitration-2","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nConstruction Litigation\u00a0Roundup: \u201cStop - 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