On October 10, 2023, California Governor Newsom signed into law S.B. 365, a bill that amends California Code of Civil Procedure Section 1294. The new law provides that when a party appeals an order denying a motion to compel arbitration (an order which is immediately appealable), the trial court is not obligated to stay the action during the pendency of the appeal. The law marks a major shift in California civil procedure law.
Under the previous version of California Code of Civil Procedure Section 916, trial courts were generally required to stay proceedings during the pendency of an appeal of a denial of a motion to compel arbitration.
