In Smith v. Spizzirri, 2024 WL 2193872 (U.S. May 16, 2024), the United States Supreme Court issued a ruling holding that courts must stay, rather than dismiss, cases that are subject to arbitration. The unanimous decision resolves a circuit split on the issue and has far-reaching implications on the continued role of courts in cases subject to arbitration.
The Federal Arbitration Act (FAA) sets forth procedures for enforcing arbitration agreements in federal court. Specifically, Section 3 of the FAA specifies that when a dispute is subject to arbitration, the court “shall on ...
Last Thursday, the Supreme Court upheld the Congressional funding mechanism used to fund the Consumer Financial Protection Bureau (CFPB), overruling a Fifth Circuit decision that found the funding mechanism violated the Constitution’s Appropriations Clause. Cons. Fin. Prot. Bureau et al. v. Cmty. Fin. Servs. Ass. of Am., Ltd., 601 U. S. ____ (2024). In an apparent break from recent decisions limiting certain agency’s powers, the Court held that the CFPB’s standing source of funding was constitutional even though such funding is outside the annual appropriations.
The ...