Originally from Alternatives to the High Cost of Litigation

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The U.S. Supreme Court issued three decisions during the term ending in July involving the Federal Arbitration Act. These cases showcase the Court’s textual approach and also provide a glimpse regarding the possible future development of arbitration in the United States.

The Rulings

These cases involved fine points of arbitration law or distinctive fact patterns. In Bissonnette v. LePage Bakeries Park St. LLC, No. 23-51 (April 12) (available at https://bit.ly/4avulyl), the Court clarified the contours of the transportation worker exemption. The Court held that a worker may still qualify for the exemption even if the worker’s employer is not in the transportation industry.

Smith v. Spizzirri, No. 22-1218 (May 16) (available at https://bit.ly/3XWp4Nc), involved a procedural matter under FAA Section 3. The Court held that judges do not have discretion to dismiss a lawsuit when a party requests a stay pursuant to Section 3. Instead, the statute requires the court to stay the court proceedings.