Craig Tractenberg of Fox Rothschild. Courtesy photo The Supervisory Role of Federal Courts Under the FAA in Franchise Disputes
As a statutory interpretation case, the court examined the text, structure, and purpose of the FAA. The only conclusion which could be drawn is that "when a federal court finds that a dispute is subject to arbitration, and a party has requested a stay of the court proceeding pending arbitration, the court does not have discretion to dismiss the suit on the basis that all the claims are subject to arbitration."
May 23, 2024 at 11:33 AM
6 minute read
The U.S. Supreme Court has issued frequent opinions involving interpretation of the Federal Arbitration Act (the FAA), which governs the enforcement of arbitration agreements in federal court. On May 16, Justice Sonia Sotomayor writing for a unanimous court issued an opinion in Smith v. Spizzirri, regarding the supervisory role of federal courts in cases that should be arbitrated, reinforcing the importance of arbitration as a method of dispute resolution, particularly in franchise disputes.
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