Section 16 of the FAA discusses when a party may appeal a district court order regarding arbitration. For example, appeals are allowed for orders denying a section 4 petition to compel arbitration and orders refusing to stay a court action pending arbitration under section 3, or what I call “anti-arbitration” orders. Section 16 also says that generally, appeals may not be taken of an order compelling arbitration under section 4 or an order staying an action pursuant to section 3, or what I call “pro-arbitration” orders. The language of section 16 reflects the pro-arbitration policies of the FAA; appeals should not lightly interfere with a decision to enforce an arbitration agreement.
Earlier this week, the Ninth Circuit discussed the appealability of an order compelling arbitration, where the district court neither explicitly dismisses nor explicitly stays an action. Medivas v. Carpenter, No. 12-55375 (9th Cir. Jan. 27, 2014) (click here for a copy of the decision). Section 16 of the FAA also provides for an appeal of “a final decision with respect to an arbitration that is subject to this title.” The Ninth Circuit ruled that an order compelling arbitration, but not explicitly dismissing nor staying an action, is not a “final decision” under the terms of section 16 and hence not appealable. The Ninth Circuit, however, also recognized that orders compelling arbitration and dismissing the underlying claims would be a “final decision” under section 16 and hence appealable.