SCOTUS to decide important arbitration question
You worked so hard on your arbitration agreement and its rollout. It required a lot of time, effort, and money. After it’s been implemented, a discrimination lawsuit is filed against you in federal court by an employee. Ah-ha! You ask the court to send the claim to arbitration, but the court finds your policy legally deficient and denies the request. You appeal.
But what happens to the claim in the trial court at that point? Does it still proceed in the trial court while the appeal awaits decision, or does the appeal operate to “stay” (i.e., put on hold) all proceedings in the trial court until the appeal is decided? The U.S. 5th Circuit Court of Appeals, which covers Texas employers, says it’s the first option. But the U.S. Supreme Court might say otherwise.
Cryptocurrency dispute arises
Coinbase is a company that operates a cryptocurrency exchange, similar to the recently failed FTX. There, users of the exchange can buy, sell, and transact in various digital currencies such as bitcoin, ether, or dogecoin. (I don’t invest in what I don’t understand, nor do I attempt to explain what I don’t understand.)
To use the service, a person must agree to send a dispute with the company to arbitration. A dispute did arise (imagine that!), a lawsuit was filed, and the company’s request to compel arbitration was denied by the court. Thus, the dilemma described above arose and has now found its way to the High Court. Coinbase, Inc. v. Bielski
Bottom line