New Supreme Court Decision Upholds “Staying” Cases Subject to Arbitration

The Supreme Court’s recent decision in Smith v. Spizzirri clarifies how courts should handle lawsuits in matters that are subject to mandatory arbitration.  Under Section 3 of the Federal Arbitration Act (FAA), if any lawsuit involving an issue covered by a written arbitration agreement is brought in a U.S. court, the court must, upon request by one of the parties, stay the trial until the arbitration is completed. In Spizzirri, the high court held that

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