A US Supreme Court case on whether trial court proceedings should automatically be paused while defendants fight to send disputes to arbitration promises to reshape litigation strategies in employment fights.
The justices last week agreed to weigh the question of whether trials should be halted during an appeal of a trial court decision denying a defendant’s motion to compel arbitration.
Employers and worker advocates alike are closely watching the case, which could resolve a federal appeals court divide. The decision promises to impact both sides’ litigation strategies.
The issue is before the court in a combined pair of cases involving Coinbase Global Inc. brought by users who defeated the cryptocurrency exchange’s bids to send disputes with the platform to arbitration. The US Court of Appeals for the Ninth Circuit refused to stay district court proceedings while considering Coinbase’s appeal.
A uniform precedent requiring a suit to move forward while the defendant presses an appeal to compel arbitration could force employers into expensive and time-consuming dual-front fights, and give workers significant leverage in pushing for settlements, attorneys who represent employers said.
“If, as in this case, employees can initiate litigation in a circuit that gives the court discretion to stay pending appeal, the employer would lose significant protections,” said Richard...
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