MediVas, LLC v. Marubeni Corp.

After MediVas defaulted on a loan, Marubeni foreclosed on promissory notes held by MediVas and threatened to foreclose on additional MediVas assets. MediVas and others filed suit against Marubeni in state court, raising numerous state law claims. Marubeni, invoking a contractual arbitration clause, removed the action to federal court and moved to compel arbitration and initiated arbitration against plaintiffs. At issue was whether an order compelling arbitration was appealable when the district court neither explicitly dismissed or explicitly stayed the action. The court held that such an order implicitly stayed the action and thus was not "a final decision with respect to an arbitration" under the Federal Arbitration Act, 9 U.S.C. 16(a)(3); the court adopted a rebuttable presumption that an order compelling arbitration but not explicitly dismissing the underlying claims stayed the action as to those claims pending the completion of the arbitration; and the court dismissed the appeal for lack of jurisdiction. View "MediVas, LLC v. Marubeni Corp." on Justia Law