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Arbitration Mandatory Arbitration Federal Arbitration Act

Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties... more +
Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties to arbitration agree in advance to be bound by the arbitrator's decision. Arbitration is an alternative to litigation, but it shares many of the familiar features of litigation. Namely, parties to arbitration hold hearings before neutral decision-makers, present evidence and argue the merits of their position. Parties often choose arbitration due to its perceived advantages over litigation. Those perceived advantages include greater efficiency and flexibility, and lower costs. less -
Troutman Pepper Locke

Fourth Circuit Holds SCRA Does Not Bar Mandatory Arbitration in Consumer Agreements, Forcing Portion of Class Action Into...

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On January 27, a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit issued a significant opinion holding that the Servicemembers Civil Relief Act (SCRA) does not prohibit the enforcement of arbitration...more

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

Womble Bond Dickinson

Supreme Court Clarifies Arbitration Clauses: Key Takeaways for Companies

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Recent decisions by the U.S. Supreme Court in Smith v. Spizzirri, 601 U.S. 472 (2024) and Coinbase, Inc. v. Suski, 144 S. Ct. 1186 (2024) provide important guidance for companies utilizing arbitration clauses in their...more

Troutman Pepper Locke

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

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

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

Recent Court Rulings on FAA’s Transportation Worker Exemption May Require Employers to Update Their Arbitration Agreements

The U.S. Department of Labor estimates 56 percent of all nonunion private-sector employees are subject to mandatory arbitration agreements. Many employers use such agreements—and the class action waivers contained therein—to...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

McGlinchey Stafford on

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

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

BakerHostetler

At Long Last, California District Court Permanently Enjoins Enforcement of AB 51

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There are times when one would rather not be proven right. Nearly four years ago, a California district court invalidated AB 51, which sought to prohibit mandatory arbitration by, among other things, calling for criminal...more

Meyers Nave

Ninth Circuit Blocks California’s AB 51, Reopening the Door for Mandatory Employment Arbitration

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Mandatory Arbitration is Alive and Well - A big win for California employers was announced February 15, 2023, when the Ninth Circuit Court of Appeals in Chamber of Commerce of the United States of America v. Bonta found...more

Alston & Bird

Ninth Circuit Green-Lights Employers’ Continued Use of Mandatory Arbitration Agreements in California

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Our Labor & Employment Group examines why the Ninth Circuit reversed itself and ruled that the Federal Arbitration Act preempts a California law that prohibited arbitration agreements as a condition of employment....more

Stokes Wagner

California Employers May Require Arbitration Agreements as a Condition of Employment

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Avid readers of Stokes Wagner’s legal updates may be familiar with California’s Assembly Bill 51, a law that, until very recently, prohibited California employers from requiring employees or job applicants to sign arbitration...more

Fisher Phillips

Does Your Dealership Arbitrate? Recent Developments in Workplace Arbitration Agreements

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Employers – and, in particular, car dealerships – have relied on binding arbitration agreements to resolve employment disputes for decades. Arbitration offers a confidential setting in which businesses can efficiently...more

Ervin Cohen & Jessup LLP

Supreme Court Hears Oral Argument on Arbitrability of California's Private Attorneys’ General Act Under Federal Arbitration Act

Since the California Supreme Court’s ruling in Iskanian v. CLS Transportation Los Angeles, LLC in 2014, it has been widely understood that Private Attorneys’ General Act (“PAGA”) actions cannot be subject to employment...more

Sheppard Mullin Richter & Hampton LLP

Ninth Circuit Upholds in Part California’s Ban on Mandatory Arbitration

A divided Ninth Circuit panel dealt a blow to California employers recently in holding that a state law prohibiting mandatory arbitration agreements is largely not preempted by the Federal Arbitration Act (“FAA”).  California...more

Fox Rothschild LLP

Fate Of Mandatory Arbitration Agreements In California In Flux

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A recent 9th Circuit ruling has cast doubt on employers’ ability to implement mandatory arbitration agreements for workers, and whether (and to what extent) there will be civil and criminal penalties for doing so. Until the...more

Fisher Phillips

Judge Explains Her Decision to Block California’s Ban on Mandatory Arbitration

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California employers breathed a bit easier once a federal judge pressed the indefinite pause button on the newly enacted law aimed at preventing employers from utilizing mandatory arbitration agreements. Now, a few weeks...more

Littler

EEOC Rescinds Policy Statement Disfavoring Arbitration Agreements

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As part of its efforts to rescind outdated guidance on a rolling basis, the EEOC recently dispensed with a 22-year-old policy statement that disfavored mandatory arbitration agreements between employers and employees....more

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