Lloyd v. Argent Trust Company

Nature of the Document

The provided text is a letter from defendants’ counsel to Judge Denise Cote, not a judicial opinion or order. It asks the court to stay, meaning pause, all proceedings while defendants pursue an interlocutory appeal—an appeal allowed before the entire case ends—from the court’s denial of their motion to compel arbitration.

Background

The letter says that the court previously denied defendants’ motion to compel arbitration in an order identified as Docket No. 60. Defendants then filed an interlocutory appeal under 9 U.S.C. § 16(a), identified as Second Circuit Case No. 22-3116. According to the letter, that appeal remained pending and was in abeyance based on plaintiffs’ motion.

Defendants relied on the Supreme Court’s decision in Coinbase, Inc. v. Bielski. They said that decision requires a district court to stay its proceedings while an interlocutory appeal concerns whether a dispute belongs in arbitration or in court. They argued that the decision applied directly because their appeal concerns the denial of their request to compel arbitration.

Parties’ Positions

The letter states that plaintiffs did not oppose defendants’ request for a stay. Plaintiffs asked defendants to note that, if the Second Circuit affirmed the district court’s decision in a related proceeding, plaintiffs reserved the right to seek certification that defendants’ appeal was frivolous and that the stay should be lifted. Defendants disputed that such an affirmance would make their appeal frivolous.

Requested Relief and Disposition

Defendants asked Judge Cote to stay all proceedings until the Second Circuit issued a mandate concerning the ongoing interlocutory appeal. The provided text does not state that Judge Cote granted, denied, or otherwise ruled on the request.