Supreme Court Rules Courts Must Stay, Rather than Dismiss, Cases in Which All Claims Are Subject to Arbitration

On May 16, 2024, the Supreme Court in Smith v. Spizzirri clarified one procedural question concerning a U.S. court's role in compelling parties to arbitrate claims: When a court is faced with a case that is subject to arbitration based on the parties' written arbitration agreement, should the court stay the case pending arbitration or dismiss the case outright? The Supreme Court unanimously held that the Federal Arbitration Act (FAA) requires courts to stay, rather than dismiss, cases that are subject to arbitration. The decision resolves a federal court circuit split and may make it more difficult to immediately appeal a decision compelling parties to arbitration.

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