Construction Law

Appeal from order denying stay of arbitration is immediately appealable under FAA

By Werner Sabo

The Supreme Court in Arthur Andersen v. Carlisle, No. 08-146 (May 4, 2009) held that a party in federal court can take an immediate appeal under section 3 of the Federal Arbitration Act from an order refusing a stay of arbitration. There will be jurisdiction in the appellate court regardless of the merits of the actual action. The only requirement for such jurisdiction is the denial of a stay.

The court also held that a litigant who is not a party to the arbitration agreement may invoke section 3 if the relevant state contract law allows him to enforce the agreement. Thus, non-signatories to the arbitration agreement such as third party beneficiaries and others entitled to enforce contracts under state law can request and obtain a stay under section 3, if permitted by applicable state law.

Full post as published by Construction Attorney Blog on May 08, 2009 (boomark / email).