California is tightening restraints on proceedings in the state’s legal landscape. Governor Gavin Newsom signed CA Senate Bill 365 (SB 365) on October 10, 2023, a measure designed to become operable in 2024. The significant feature of this bill is that it enables state court judges the discretion to proceed with litigation in a trial court, even when an appeal denying a petition to compel arbitration is under review.
The new law comes to light after a critical verdict by the U.S. Supreme Court in a case involving Coinbase v. Bielski, as detailed by Fenwick & West LLP. In this particular case, the nation’s highest court resolved a circuit split.
While the specificities surrounding the new ruling have yet to be publicly released, the law indicates significant implications for how state court czars approach litigation mid-appeal. Those interested in the complexities of the legal system in California, particularly in the context of arbitration proceedings, should watch these developments closely.
Further details on SB 365 can be found here.