The Supreme Court Allows Non-Signatories to Arbitration Agreements to Seek to Stay Claims under the Federal Arbitration Act
Yesterday, in Arthur Andersen, LLP, et al. v. Carlisle, et al., No. 08-146, the United States Supreme Court held that non-signatories to an arbitration agreement may obtain a stay of claims in favor of arbitration under section 3 of the Federal Arbitration Act (“FAA”). In reaching its decision, the Court found that an arbitration agreement may be enforced pursuant to a section 3 motion to stay by any party entitled to enforce its terms under state law. The Court also held that, under section 16 of the FAA, parties may immediately appeal a trial court’s denial of a motion to stay, regardless of whether or not such party is eligible for the stay.