In a discrimination case originally filed in district court by a hotel employee, the court retained jurisdiction under the Federal Arbitration Act (FAA) over the claims after they were “stayed” for arbitration, the U.S. Supreme Court ruled May 14. The litigation was complicated by a lower court split over jurisdiction, a split the Supreme Court resolved.

Termination During Pandemic Challenged

Adrian Jules worked from 2017 to 2020 at the Chateau Marmont Hotel in Los Angeles. In March 2020, the hotel terminated Jules, citing staffing issues related to the COVID-19 pandemic.

Jules sued in a federal district court in New York, where several defendants lived, alleging that the defendants unlawfully discriminated against him in violation of federal and state law.

However, Jules had signed an arbitration agreement before beginning work at the hotel. The agreement stated that any disputes related to his employment or termination that could not be resolved by negotiation or mediation must be resolved by arbitration. Citing this agreement, the defendants moved to stay federal proceedings pending arbitration under Section 3 of the FAA.

Arbitration Award Affirmed by Lower Courts

In 2023, an arbitrator issued a final award ruling against Jules on all claims. In addition, the arbitrator awarded about $34,500 in sanctions to the defendants based on Jules’ and his attorney’s misconduct, including Jules’ refusal to participate in the arbitral hearing on the claims.

Back in the district...

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