STORY FROM: Reinsurance & Arbitration

High Court Declines to Decide Whether Stay is Required After Claims Sent to Arbitration

WASHINGTON, D.C. — Despite a circuit split, the U.S. Supreme Court has declined to weigh in on the question of whether a court should stay, rather than dismiss, a proceeding upon a party’s request after granting a motion to compel arbitration.

The high court denied the petition for certiorari on Oct. 21, refusing to disturb the 2nd Circuit U.S. Court of Appeals’ 2015 ruling that Section 3 of the Federal Arbitration Act requires a mandatory stay.

Michael Katz sued Verizon Wireless in the U.S. District Court for the Southern District of New York, asserting claims for breach of contract ...

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