When an issue in a lawsuit is subject to a valid arbitration agreement between the parties, the Federal Arbitration Act, 9 U.S.C. § 3, requires
federal courts to “stay the trial of the action until such arbitration has been
had been had in accordance with the terms of the agreement.” In Smith v.
Spizzirri, decided on May 16, 2024, the Court ruled that this section does
not permit the trial court to simply dismiss the arbitrable lawsuit. Instead, a trial court confronted with this situation must retain the case on its docket, without conducting a trial, until the arbitration agreement has been fully followed. The vote on the Court was unanimous.
Comment: In its full context, this statute, read as a
whole, unambiguously required this ruling. See Oxford English Dictionary, s.v. “stay (v.1), sense III.25.a,” March 2024, https://doi.org/10.1093/OED/6871125741.
Dan Rhea
RECENT RULINGS 