In a new case that reminds federal judges everywhere to sing "I've got the power!" like C&C Music Factory, the Fifth Circuit reiterates that federal courts can stay related state court actions if necessary to "protect or effectuate" an order compelling arbitration. American Family Life Assurance Co. of Columbus v. Biles, __ F.3d __, 2013 WL 1809766 (5th Cir. April 30, 2013).
The insurance policy had an arbitration clause, but the angry family members refused to arbitrate. That led the insurer, Aflac, to file a federal court action to compel arbitration. After multiple motions and expert affidavits about whether the decedent's signature on the policy was a forgery, the district court compelled arbitration and enjoined the angry family from continuing their state court action. The angry family appealed on multiple grounds.