Arbitration, Costs: Ninth Circuit Addresses What Happens To Litigation Stay When Party Cannot Afford To Pay Ongoing Costs Of Compelled Arbitration

Does A Court Stay On Litigation Get Lifted When A Party Is Unable To Pay Ongoing Costs Of An Arbitration?

     On June 15, 2016, Co-contributor Marc posted in the California Mediation and Arbitration blog about  Tillman v. Rheingold Firm, No. 13-56624 (9th Cir. 6/15/16), a Ninth Circuit Case addressing what happens to a district court stay of an action after a party can no longer afford to pay the cost of compelled arbitration, and the AAA suspends the arbitration.  Spoiler Alert:  The answer depends on whether the arbitration has been had, within the meaning of section 3 of the Federal Arbitration Act.