Supreme Court Reopens Federal Courthouse Doors For Post-Arbitration Proceedings In Stayed Cases

In a significant win for parties seeking to enforce arbitration agreements, the U.S. Supreme Court yesterday issued a unanimous decision in Jules v. Andre Balazs Properties holding that when a federal court stays a case pending arbitration under Section 3 of the Federal Arbitration Act (“FAA”), the federal court retains jurisdiction to later confirm or vacate the resulting arbitration award, even if the post-arbitration motion would not independently satisfy federal subject matter jurisdiction requirements. The opinion was written by Justice Sotomayor.

The decision resolves an important circuit split and will have immediate practical consequences for businesses that routinely compel arbitration in federal court.