Page:Coinbase, Inc. v. Bielski.pdf/9

6 If the district court could move forward with pre-trial and trial proceedings while the appeal on arbitrability was ongoing, then many of the asserted benefits of arbitration (efficiency, less expense, less intrusive discovery, and the like) would be irretrievably lost—even if the court of appeals later concluded that the case actually had belonged in arbitration all along. Absent a stay, parties also could be forced to settle to avoid the district court proceedings (including discovery and trial) that they contracted to avoid through arbitration. That potential for coercion is especially pronounced in class actions, where the possibility of colossal liability can lead to what Judge Friendly called “blackmail settlements.” H. Friendly, Federal Jurisdiction: A General View 120 (1973).

As Judge Easterbrook stated, continuation of proceedings in the district court “largely defeats the point of the appeal.” Bradford-Scott, 128 F. 3d, at 505. A right to interlocutory appeal of the arbitrability issue without an automatic stay of the district court proceedings is therefore like a lock without a key, a bat without a ball, a computer without a keyboard—in other words, not especially sensible.

From the Judiciary’s institutional perspective, moreover, allowing a case to proceed simultaneously in the district court and the court of appeals creates the possibility that the district court will waste scarce judicial resources—which could be devoted to other pressing criminal or civil matters—on a dispute that will ultimately head to arbitration in any event. That scenario represents the “worst possible outcome” for parties and the courts: litigating a dispute in the district court only for the court of appeals to “reverse and order the dispute arbitrated.” Id., at 506. The Griggs rule avoids that detrimental result.

Importantly, Congress’s longstanding practice both reflects and reinforces the Griggs rule. When Congress wants to authorize an interlocutory appeal and to automatically stay the district court proceedings during