Ross Runkel

View Original

Pending Supreme Court case on arbitration

[Watch the video]

After Coinbase was sued (in two cases), they moved to compel arbitration and to stay the court proceedings. The trial courts denied the motions to compel arbitration – one on the ground of unconscionability, the other on the ground that the arbitration agreement did not apply to the issue at hand.

The trial courts also denied the motions for a stay. Coinbase filed interlocutory appeals at the 9th Circuit, but the trial courts allowed the court litigation to proceed. The 9th Circuit refused to grant a stay.

Now the cases are consolidated in the US Supreme Court – Coinbase v. Bielski [Briefs], and oral arguments are scheduled for March 21.

NOTE: This is not an employment law case, yet it will be important for employment lawyers.

Federal Arbitration Act Section 16 provides for an interlocutory appeal from the denial of a motion to compel arbitration, but it says nothing about a stay. FAA Section 3 requires a stay when a court does compel arbitration.

So which will it be? Automatic stay? Or within the trial court's discretion?