Ca_Law

case_law | United States Federal

Coinbase, Inc. v. Bielski

Summary

A district court must stay its proceedings while an interlocutory appeal taken pursuant to 9 U. S. C. §16(a) on the question of arbitrability is ongoing.

Text

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  • #1

    PRELIMINARY PRINT Volume 599 U. S. Part 1 Pages 736–761 OFFICIAL REPORTS OF THE SUPREME COURT June 23, 2023 REBECCA A. WOMELDORF reporter of decisions Page Proof Pending Publication NOTICE: This preliminary print is subject to formal revision before the bound volume is published. Users are requested to noti…

  • #2

    Most courts of appeals to address this question, as well as leading trea- tises, agree with that conclusion. The common practice of staying district court proceedings during the pendency of an interlocutory appeal taken under § 16(a) refects common sense. If the district court could move forward with pre-trial and…

  • #3

    rights to an interlocutory appellate determination of arbitrability. In any event, the background Griggs rule applies regardless of how often courts might otherwise grant stays under the ordinary discretionary stay factors. Fifth, while the Court has recognized that questions of arbitrability are severable from me…

  • #4

    Justice Association of California by Fred J. Hiestand and Benjamin G. Shatz; for the National Retail Federation by Andrew J. Pincus, Archis A. Parasharami, and Kevin Ranlett; and for the Washington Legal Founda- tion by Cory L. Andrews and John M. Masslon II. Sarah Elizabeth Spencer fled a brief for the DRI Center…

  • #5

    v. Physician Computer Network, Inc., 128 F. 3d 504, 506 (CA7 1997). 1 As relevant, the text of § 16(a) provides: “An appeal may be taken from . . . an order . . . “(A) refusing a stay of any action under section 3 of this title, “(B) denying a petition under section 4 of this title to order arbitration to procee…

  • #6

    and divests the district court of control over those aspects of the case involved in the appeal”). Page Proof Pending Publication Cite as: 599 U. S. 736 (2023) 741 Opinion of the Court The Griggs principle resolves this case. Because the question on appeal is whether the case belongs in arbitration or instead i…

  • #7

    Weingarten Realty Investors v. Miller, 661 F. 3d 904, 907–910 (CA5 2011). Page Proof Pending Publication 742 COINBASE, INC. v. BIELSKI Opinion of the Court ongoing. For example, Moore's treatise states that a “stay in these circumstances” is “the sounder approach” and “is consistent with the general [Griggs ] pr…

  • #8

    Independent School Dist. v. U. S. Mineral Prods. Co., 906 F. 2d 1059, 1063– 1064 (CA5 1990). Page Proof Pending Publication Cite as: 599 U. S. 736 (2023) 743 Opinion of the Court refects common sense. Absent an automatic stay of district court proceedings, Congress's decision in § 16(a) to afford a right to an …

  • #9

    Opinion of the Court stay the district court proceedings during that appeal, Con- gress need not say anything about a stay. At least absent contrary indications, the background Griggs principle al- ready requires an automatic stay of district court proceed- ings that relate to any aspect of the case involved in t…

  • #10

    that Coinbase's appeal in this case is frivolous. Importantly, moreover, the courts of appeals possess robust tools to pre- vent unwarranted delay and deter frivolous interlocutory ap- peals. For example, a party can ask the court of appeals to summarily affrm, to expedite an interlocutory appeal, or to dismiss t…

  • #11

    would create a special, arbitration-preferring procedural rule. That is incorrect. In fact, Bielski's proposed ap- proach would disfavor arbitration. Applying the Griggs rule here simply subjects arbitrability appeals to the same stay principles that courts apply in other analogous contexts where an interlocutory…

  • #12

    Griggs, 459 U. S., at 58. The answer is yes, and Moses H. Cone says nothing to the contrary. * * * We conclude that, after Coinbase appealed from the denial of its motion to compel arbitration, the District Court was required to stay its proceedings. On remand, we anticipate that the Ninth Circuit here, as we an…

  • #13

    And, in reaching this result, the Court concludes for the frst time that an interlocutory appeal about one matter (arbitra- bility) bars the district court from proceeding on another (the merits). That logic has such signifcant implications for federal litigation that the majority itself shies away from the Pando…

  • #14

    appeals. Yet Congress omitted it from § 16, while simulta- neously imposing it in § 1292(d)(4). Second, Congress expressly mandated a general interlocu- tory stay in another provision of the Federal Arbitration Act. Section 3 pertains to a circumstance in which the trial court is “satisfed” that an issue should b…

  • #15

    graphs (1) and (2), which authorize permissive appeals “if application is made” and granted. §§ 1292(d)(1)–(2). Meanwhile, paragraph (4) sepa- rately authorizes certain as-of-right appeals, § 1292(d)(4)(A), and it im- poses mandatory stays in such appeals, § 1292(d)(4)(B). In an appeal as of right under paragraph …

  • #16

    ibid.—a line that appears nowhere in the majority's cited statutes. At the end of the day, the best the majority can do is point to a smattering of provisions that do not contain the rule that the majority adopts. And those provisions do not even relate to § 16 or the majority's rule (staying litigation gener- a…

  • #17

    That statute cemented a background discretionary-stay rule that governed even where Congress was silent—as this Page Proof Pending Publication Cite as: 599 U. S. 736 (2023) 753 Jackson, J., dissenting Court has repeatedly recognized. Shortly after the 1891 Act, a case arose under conditions in which the Act was …

  • #18

    Jackson, J., dissenting stay rule) existed as a background matter when Congress enacted § 16 in 1988. Indeed, the majority opinion does not identify a single case in which this Court imposed a manda- tory general stay of pre-trial and trial proceedings pending an interlocutory appeal. Not in an arbitration case. …

  • #19

    district court of control over only a narrow slice of the case. The interlocutory appeal addresses an order declining to compel arbitration. Griggs merely prevents the district court from modifying that order—i. e., Griggs prevents the district judge from revisiting whether to compel arbitration while the appeal …

  • #20

    its proceedings just because a distinct procedural question was on appeal. In fact, the majority's supercharged version of Griggs con- tradicts its own account of Congress's intent. Consider the statutes that the majority points to as models of how Con- gress would reject a mandatory-general-stay rule. Ante, at …

  • #21

    hood of success on the merits, irreparable harm, favorable balance of equities, and alignment with the public interest. See ibid. The majority offers no good reason for that result. The majority says that an automatic stay protects the party seek- ing arbitration and conserves resources in case the dispute “ulti…

  • #22

    opposing arbitration loses the benefts of immediate litiga- tion. A plaintiff's request for injunctive protection against imminent harm, for example, goes unanswered under the ma- jority's rule. Similarly, while the majority laments settle- ment pressure on parties seeking arbitration, ibid., the rule it announce…

  • #23

    4 For over a decade, the Second, Fifth, and Ninth Circuits have all held that a § 16(a) appeal triggers no mandatory general stay. Motorola Credit Corp. v. Uzan, 388 F. 3d 39, 53–54 (CA2 2004); Britton v. Co-op Banking Group, 916 F. 2d 1405, 1412 (CA9 1990); Weingarten Realty In- vestors v. Miller, 661 F. 3d 904, …

  • #24

    (1994). “Such motions can be made in virtually every case.” Ibid. Does every interlocutory appeal concerning a case- dispositive issue now trigger a mandatory general stay of trial court proceedings? Taken that broadly, the mandatory-general-stay rule the Court adopts today would upend federal litigation as we k…

  • #25

    makes available the offcial United States Reports citation in advance of publication. The syllabus has been prepared by the Reporter of Decisions for the convenience of the reader and constitutes no part of the opinion of the Court. A list of counsel who argued or fled briefs in this case, and who were members of …