![]() ![]() The company says the funds were stolen when Bielski granted an imposter PayPal representative remote access to his computer. Coinbase argues that any dispute brought by Bielski must be resolved solely through arbitration. court system.īielski sued to invalidate his agreement after hackers stole approximately $31,000 from his Coinbase account and the exchange allegedly declined to help him recover the funds. Like most, if not all Coinbase customers, Bielski and the Suski plaintiffs signed user agreements specifying that “any dispute” between them and the exchange must be resolved through arbitration, not through the U.S. ![]() “Allowing district court proceedings to march on-through discovery, potential class proceedings, and even a trial- while the arbitrability question is resolved on appeal improperly permits the district court to retain jurisdiction over the core issue on appeal,” Coinbase wrote in its petition to the high court. Doing so, it says, would fly in the face of Congress’ “clear intent” in adopting the 1925 Federal Arbitration Act to efficiently move parties out of court and into arbitration, and a 1988 amendment that permits parties to appeal court decisions that override mandatory arbitration agreements. "And they don't want to be coerced into massive settlements without having the opportunity to take advantage of the right that Congress has given them to have an appeals court decide whether arbitration is the appropriate forum."Ĭoinbase argues that it shouldn’t have to defend litigation in district court while it's waiting on an appellate court to rule on objections to override its arbitration mandate. "If the district court discovery goes forward.that is going to coerce massive settlements," Justice Brett Kavanaugh said. Multiple justices expressed concern that Coinbase and similarly situated parties could be coerced into settling class-action cases like the ones before the court. Zavareei acknowledged that in some cases a litigation pause could be appropriate, such as when an arbitration agreement specifically calls for limited discovery. The setting sun illuminates the Supreme Court building on Capitol Hill in Washington, Jan. And we've got a client who lost $30,000." ![]() Look at this case, where Coinbase, the entire cryptocurrency market is collapsing under our feet and other exchanges, competitors with Coinbase, are going bankrupt left and right. "There are risks associated with slowing down the litigation," Zavareei said during oral arguments. "They want delay on top of delay," he said, adding that both the trial court and circuit court had already found the arbitration terms unenforceable. In an interview with Yahoo Finance, Zavareei said Coinbase is using its arbitration clause as a delay tactic. ![]() Zavareei argued the law's silence means there is no automatic pause for litigation. "Why is it unreasonable to think that Congress thought that was enough?" Chief Justice John Roberts asked. "It is a huge benefit to you to be able to take an interlocutory appeal, right?" Justice Neil Gorsuch told Katyal, Coinbase's lawyer.Īn interlocutory appeal, which Coinbase requested in the cases before the court, allows a party to ask for appellate review of the trial court's decision while that trial court is still handling the underlying dispute. The justices pressed Katyal and his opponent Zavareei, a lawyer for Bielski, on whether or not parties like Coinbase have a right to pause litigation - an issue left unclear, under federal statutes. ![]()
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