Second Circuit: FAA Mandates Stay Of Claims Pending Arbitration

The Second Circuit recently held in Katz v. Cellco P'Ship d/b/a/ Verizon Wireless, Nos. 14-138, 14-291, 2015 WL 4528658 (2d Cir. July 28, 2015) that, under the Federal Arbitration Act ("FAA"), district courts must stay all proceedings upon a finding that the claims before the court are subject to arbitration if a stay is requested.

Plaintiff filed various state law claims in the Federal District Court. Upon considering cross-motions of the parties, the District Court held that plaintiffs' constitutional challenges to the FAA were without merit and that the claims were subject to the parties' agreement to arbitrate disputes. The Court then dismissed the case despite the fact that the defendant requested a stay, and plaintiff appealed the dismissal.