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ARBITRATION-FEDERAL ARBITRATION ACT-STAY VERSUS DISMISSAL

Smith v. Spizzirri, 2024 U.S. LEXIS 2170, 2024 WL 2193872 (S. Ct. May 16, 2024) (Sotomayor, J.).

The Federal Arbitration Act (FAA) sets forth procedures for enforcing arbitration agreements in federal court. Section 3 of the FAA specifies that, when a dispute is subject to arbitration, the court “shall on application of one of the parties stay the trial of the action until [the] arbitration” has concluded. 9 U. S. C. §3. The question here is whether §3 permits a court to dismiss the case instead of issuing a stay when the dispute is subject to arbitration and a party requests a stay pending arbitration. It does not.