This decision resolves a split among federal appeals courts. The Supreme Court here rejected the approach of the U.S. Courts of Appeal for the First, Fifth, and Eighth Circuits, which had permitted federal trial courts to dismiss lawsuits when claims are subject to arbitration. The Justices sided with the approach taken by the Second, Third, Sixth, Seventh, Tenth, and Eleventh Circuits, which had required trial courts to stay lawsuits while the arbitration process occurs.
This case concerns the federal arbitration statute, so its influence on state courts remains uncertain. However, many states have arbitration statutes modeled on the FAA, so this decision may be influential under state law as well.