INTRODUCTION Contributed by: Gary Born and Matteo Angelini, King & Spalding LLP
Smith v Spizziri The US Supreme Court held that federal courts must stay, rather than dismiss, claims that are governed by an arbitration agreement. The decision is important as, while a party can immediately appeal an order dismissing an action, there is no immediate right of appeal from an order staying the proceedings. The decision resolves a circuit split over whether FAA, 9 USC Section 3 requires a court to stay proceedings after compelling arbitration. The Supreme Court’s pro- arbitration decision reasoned that staying, instead of dismissing, lawsuits subject to an arbitration agree - ment is consistent with the supervisory role that the FAA envisions for the courts and allows parties to seek relief related to the arbitration without filing a new case.
arbitrate and, therefore, the US courts lacked juris - diction under the FSIA’s arbitration exception. The DC Circuit Court of Appeals determined that whether Spain consented went to the scope of the arbitra - tion agreement rather than basic jurisdiction and, therefore, was a question for the tribunal. The US Supreme Court denied certiorari and left intact the DC Circuit rulings. The decision confirms the USA as a pro-enforcement jurisdiction, including with respect to awards against sovereign states.
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