Justices dubious about dismissing suits while waiting for arbitration

Justices dubious about dismissing suits while waiting for arbitration

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Smith v. Spizziri is this week’s item on the court’s bountiful menu of cases under the Federal Arbitration Act. The question here is what options are available to a trial court that decides to send a case to arbitration. Must it stay the matter or, instead, does it have the option to dismiss it entirely? Discussion at the argument suggested that the justices were skeptical about the practical consequences of dismissal, so Justice Sonia Sotomayor’s opinion for a unanimous … Read the rest

Justices dubious about dismissing suits while waiting for arbitration

Justices dubious about dismissing suits while waiting for arbitration

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Monday’s argument in Smith v. Spizziri was this month’s case under the Federal Arbitration Act. This one explores what a trial court can do when it refers a pending suit to arbitration. Section 3 of the FAA says that if the court refers the case to arbitration, it “shall on application of one of the parties stay the trial of the action until such arbitration has been had.” The question is whether the trial court, instead of staying the … Read the rest