The recent Ninth Circuit decision in Forrest v. Spizzirri has reignited a deep and long-standing circuit split over the proper interpretation of Section Three of the Federal Arbitration Act (FAA). The controversy centers on whether district courts should stay or dismiss a lawsuit when all issues are subject to arbitration.

Peter B. Peter B. "Bo" Rutledge, dean of the University of Georgia School of Law. (Courtesy photo)

While seemingly a procedural matter, the issue has significant implications for statutory interpretation, district court docket management and arbitration practice. The 6-4 split among the federal appellate courts cries out for U.S. Supreme Court review.