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06/27/2024

Stay: US Supreme Court Holds That Stay Means Stay

Overruling A Ninth Circuit Decision (62 F.4th 1201 (2023).

        Though the plain language of the Federal Arbitration Act appeared to require a district court to stay a lawsuit pending arbitration rather than dismiss it, the Ninth Circuit ruled that case law allowed district courts to dismiss the lawsuit when all claims are subject to arbitration. The Supreme Court reversed in Smith v. Spizzirri, no. 22-1218 (5/16/2024). Justice Sonia Sotomayor penned the Court's unanimous opinion, writing: "Just as 'shall' means 'shall,' 'stay' means 'stay.'"

Posted by on 06/27/2024 at 05:04 PM in Arbitration: Stay |

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