News & Analysis as of

Arbitration Stays Employment Litigation

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 -
Fox Rothschild LLP

The 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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In May 2024, the U.S. Supreme Court decided an issue that has divided the federal courts of appeals. When the claims at issue in a federal court suit are subject to arbitration, does the court have authority to dismiss the...more

Seyfarth Shaw LLP

PAGA Paraphrased — Rodriguez v. Lawrence Equip., Inc.

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The Second District again held that issue preclusion barred plaintiff’s PAGA claim because he failed to establish any violation of the Labor Code and arbitral findings have a preclusive effect on a plaintiff’s standing in a...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

Seyfarth Shaw LLP

Staying Around – The Supreme Court Resolves Circuit Split and Mandates that Cases Compelled to Arbitration be Stayed (Not...

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The United States Supreme Court unanimously held that when a district court compels claims to arbitration, the district court must stay – rather than dismiss – the district court case.  In Smith v. Spizzirri, the Supreme...more

FordHarrison

U.S. Supreme Court Unanimously Holds a Court Has No Discretion to Dismiss a Lawsuit Once It Compels a Case to Arbitration

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Executive Summary: On May 16, 2024, the U.S. Supreme Court decided Smith v. Spizzirri, holding that federal district courts have no discretion under Section 3 of the Federal Arbitration Act (“the FAA”) to dismiss a case once...more

Ervin Cohen & Jessup LLP

Appealing A Petition to Compel Arbitration Ruling No Longer Automatically Stays Superior Court Proceedings

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Over the past few years, this blog has followed the California Legislature’s concerted efforts to vitiate employment arbitrations in the state. Senate Bill 365 is the next in line....more

Carlton Fields

NDNY Finds Party Waived Right to Pursue Employment-Related Claims and Confirms Arbitration Award

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The plaintiff voluntarily signed an employment agreement that provided that any and all employment-related disputes arising out of the plaintiff’s employment would be subject to confidential arbitration. Following his...more

Carlton Fields

Ninth Circuit Dismisses Interlocutory Appeal, Finds Order Compelling Arbitration Not a “Final Decision” Under FAA

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The plaintiff filed a putative class action for alleged violations of California employment law, and the defendant moved to compel arbitration....more

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