Appeal Denying Motion to Compel Arbitration Automatically Stays Litigation

Resolving a circuit split, the Supreme Court ruled 5-4 that litigation in district court is automatically stayed when a party appeals the denial of a motion to compel arbitration. Coinbase, Inc. v. Bielski, No. 22-105, 599 US ___, 2023 decided June 23, 2023.

An appeal “divests” a trial court of control “over those aspects of the case involved in the appeal”. Consequently whether a case belongs in arbitration or in court instead, the entire case is essentially “involved in the appeal” and automatically stayed pending resolution on appeal.