During oral arguments March 21, the U.S. Supreme Court examined whether litigation is automatically paused when a company appeals a district court's denial of its motion to compel arbitration. Whether employers can be forced to litigate a case in court while the appeal is pending is significant because trials tend to be more expensive and more time-consuming than arbitration.
It's unclear when the Supreme Court will issue a ruling, but it's likely to happen before the court adjourns in June.
Background on Coinbase Lawsuits
Coinbase, Inc. v. Bielski combines two class-action lawsuits filed in federal district court in California against Coinbase, a currency exchange and transaction platform. Coinbase's users agreed to arbitrate disputes with the company on an individual basis.
The first lawsuit involves a user who sued Coinbase for violating the Electronic Fund Transfer Act and the accompanying Regulation E after he was allegedly scammed and lost $31,039 of cryptocurrency from his digital wallet. The plaintiffs in the second lawsuit sued Coinbase after participating in a sweepstakes that was allegedly misleading.
Coinbase tried to move the two cases to arbitration based on the user agreement's arbitration clause. A federal district court ruled that the arbitration agreement was too one-sided in favor of Coinbase and therefore unenforceable. Coinbase appealed to the 9th U.S. Circuit Court of Appeals, which denied its request to pause the litigation pending the appeal.
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