DeSousa v. GoBrands, Inc.

Background

The parties jointly stipulated to stay the case while arbitration proceeded. They represented that they had agreed to arbitrate whether the claims in the case were subject to mandatory arbitration. They asked the court to keep the case stayed until either an arbitrator determined that some or all claims should be tried in court or the arbitration was resolved.

Court’s analysis

The court explained that federal district courts have broad discretion to pause cases to manage their dockets, conserve judicial resources, and promote the fair and efficient resolution of cases. The court concluded that a stay was warranted because it would allow an arbitrator to address whether the claims belonged in court or arbitration, and because both parties jointly requested the stay. The stay also made GoBrands’s pending motion to compel arbitration moot.

Ruling

The court granted the parties’ joint stipulation to stay the action and stayed the case until it received notice from the parties under the terms of their stipulation. The parties must file a joint status report every 120 days and no later than 30 days after either of the specified events in the stipulation occurs. The court denied GoBrands’s motion to compel arbitration without prejudice and canceled the September 14, 2022 hearing on that motion. The order did not decide whether the claims were subject to mandatory arbitration.