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ARTICLE · 23 MAY 2024

Resolving Circuit Split, U.S. Supreme Court Says Courts 'Shall' Stay Cases Sent To Arbitration

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"Shall" means "shall" in the Federal Arbitration Act (FAA), a unanimous U.S. Supreme Court held in Smith v. Spizzirri, No. 22–1218 (May 16, 2024).

United StatesLitigation, Mediation & Arbitration
Stephanie Adler-Paindiris
Stephanie Adler-Paindiris
Stephanie Satterfield
Stephanie Satterfield
Joseph Toris
Joseph Toris

"Shall" means "shall" in the Federal Arbitration Act (FAA), a unanimous U.S. Supreme Court held in Smith v. Spizzirri, No. 22–1218 (May 16, 2024). The Court explained the language in the FAA providing a court "shall on application of one of the parties stay the trial of the action until [the] arbitration" requires courts to stay, not dismiss, actions subject to valid arbitration agreements.

Background

The case involved misclassification claims of current and former delivery drivers against their employer. In response to the defendants' motion to compel arbitration and dismiss the complaint, the plaintiffs agreed the claims were subject to an enforceable arbitration agreement, but they argued the FAA required the court to stay, rather than dismiss, the action.

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