Seyfarth Shaw LLP | www.seyfarth.com Litigating CA Wage & Hour Class and PAGA Actions (23rd Edition) 197 In 2023, the U.S. Supreme Court issued a refreshing and common sense decision that reversed the Ninth Circuit. In Coinbase v. Bielski, the Court considered the question of “whether the district court must stay its pre-trial and trial proceedings while the interlocutory appeal is ongoing.”960 In a 5-4 decision, the Court held that “[t]he answer is yes: The district court must stay its proceedings.” Accordingly, California and federal courts are now in accord: an appeal of an order denying a motion to compel arbitration automatically stays trial court proceedings pending the appeal. However, California – unsurprisingly – has already taken measures to deviate from the rule handed down by Coinbase. Effective January 1, 2024, SB 365 will revise Section 1294 of the Code of Civil Procedure to no longer contain an automatic stay of all trial court proceedings pending appeal of a denial of a motion to compel arbitration. The decision whether to stay proceedings will be discretionary with the trial court, and it may mean employers will have to defend lawsuits in court while attempting to enforce arbitration agreements. Employers, though, may be able to navigate around SB 365 by including language in arbitration agreements stating that the parties agree to a stay pending any such appeal. 960 599 U.S. 736 (2023).
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