Staying District Court Proceedings Pending FAA § 16(A) Appeals
Cardozo Journal of Conflict Resolution (Fall 2013), Forthcoming
38 Pages Posted: 6 Mar 2013
Date Written: March 6, 2013
Section 16(a) of the Federal Arbitration Act allows an immediate appeal from orders denying arbitration. When an order denies arbitration and the party demanding arbitration appeals, the statute does not specify whether a district court must stay litigation pending that appeal. Both the federal circuits and the student notes written on the topic to date are split on the issue. This article analyzes the four factors courts have used in cases raising this issue. Unlike the cases and notes on point to date, this article also analyzes the issue in light of the Supreme Court’s 2009 decision of Arthur Andersen LLP v. Carlisle which, though not directly on point, provides significant guidance regarding the direction the Supreme Court is likely to go. This article argues that courts should adopt the automatic stay approach because it is most consistent with the text and purpose of the FAA, it follows the reasoning of Supreme Court precedent, it best addresses the policy concerns of preventing frivolous appeals, and it is most consistent with the intent of signatories to arbitration agreements.
Keywords: 16(a), FAA, arbitration, appeal, stay
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