Appeal of Arbitrability Does Not Impose Automatic Stay on Merits, 5th Circuit Rules

NEW ORLEANS - An appeal from a denial of a motion to compel arbitration does not divest a district court of jurisdiction to proceed to the merits, the 5th Circuit U.S. Court of Appeals has ruled. Weingarten Realty Investors v. Miller, No. 11-20676 (5th Cir.).

In a Nov. 1 opinion, the Fifth Circuit U.S. Court of Appeals reasoned that an appeal of a denial of a motion to compel arbitration does not involve the merits of the claims pending in the district court; therefore an automatic stay is not warranted.

Weingarten Realty Investors and Miller Sheriden LLC created a joint …