ANALYSIS: Are Automatic Stays Deterring Arbitration Challengers?

The US Supreme Court’s 2023 decision in Coinbase, Inc. v. Bielski resolved a longstanding circuit split regarding the absence of an automatic stay under 9 U.S.C. § 16(a) of the Federal Arbitration Act when defendants file interlocutory appeals subsequent to denials of their motions to compel arbitration. However, finally clarifying the query of whether defendants are entitled to a respite when the arbitrability of claims is being decided may be having the unintended effect of further abating litigation initiated by disgruntled plaintiffs seeking relief.

Circuit Split Resolved

Abraham Bielski, the named plaintiff in a putative class action against Coinbase Inc. ...