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. "Bo" Rutledge, dean of the University of Georgia School of Law.Peter B. "Bo" Rutledge, dean of the University of Georgia School of Law. 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.

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