Compelling Arbitration

Recently, the Supreme Court of the United States clarified Section 16(a) of the Federal Arbitration Act and, in doing so, clarified the procedure associated with appeals on compelling arbitration issues.   When a party would file a motion in District Court to compel arbitration and that motion was denied by the court, it used to be that the court was not divested of jurisdiction and could continue administration of the case while the appeal was pending.  That has now changed.

 SCOTUS has determined that appealing a denial of a motion to compel arbitration creates an automatic stay of proceedings.  Quoting Apostol v. Gallion, the Court noted “It makes no sense for trial to go forward while the court of appeals cogitates on whether there should be one.”

 To read the SCOTUS opinion, written by Justice Cavanaugh, click here.