Discretionary or mandatory? Until June 23, 2023, the circuits were divided as to whether a stay on the merits of district court proceedings was discretionary or mandatory when a party has appealed the denial of a motion to compel arbitration.

In other words, would an interlocutory appeal on arbitrability under Section 16(a) of the Federal Arbitration Act (FAA) trigger a mandatory stay of the underlying proceeding on the merits or would the resisting party have to continue litigating the merits while waiting for the appeal to be resolved in favor of arbitration?

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