Background - In 2007 Charles contracted for a home and later sued Jim Walters Homes, its affiliates, mortgage servicer Green Tree and Green Tree’s parent Walter Investment in Mississippi state court (Charles I), asserting fraud, negligence, conspiracy, and related claims. - The contract contained an arbitration clause; Charles nonetheless filed suit in state court. The case was removed to federal court on diversity grounds in March 2015. - Jim Walters Homes and a related defendant filed for bankruptcy, prompting an administrative closure of Charles I in July 2015; the court later reopened Charles I in September 2016. - In January 2016 Green Tree and Walter Investment filed a separate federal action (Charles II) under Section 4 of the FAA to compel Charles to arbitrate his claims and to stay proceedings in Charles I as to them. - The district court in Charles II granted the motion to compel arbitration, ordered that proceedings in Charles I be stayed as to Green Tree and Walter Investment, and dismissed Charles II with prejudice; Charles appealed. - The Fifth Circuit dismissed the appeal for lack of jurisdiction, reasoning that the arbitration order, read together with the stay in Charles I, was not a final, appealable decision under 9 U.S.C. § 16(a)(3). ### Issues | Issue | Plaintiff's Argument | Defendant's Argument | Held | |---|---:|---:|---:| | Whether the district court’s order compelling arbitration in Charles II is a final, appealable order under the FAA | Green Tree/Walter: the Charles II order disposed of that separate action and thus was final and appealable | Charles: the substantive claims against Green Tree/Walter remain pending in Charles I, so no final order exists | Court held no jurisdiction: when considered with Charles I (which was stayed), the arbitration order is not a final appealable decision under 9 U.S.C. § 16(a)(3) | ### Key Cases Cited Green Tree Fin. Corp. v. Randolph, 531 U.S. 79 (Sup. Ct. 2000) (defining when an arbitration-related order is final and appealable) Digital Equip. Corp. v. Desktop Direct, Inc., 511 U.S. 863 (Sup. Ct. 1994) (finality defined as ending litigation on the merits) Coopers & Lybrand v. Livesay, 437 U.S. 463 (Sup. Ct. 1978) (final judgment standard) CitiFinancial Corp. v. Harrison, 453 F.3d 245 (5th Cir. 2006) (arbitration order combined with stay in companion case is not appealable) Apache Bohai Corp. LDC v. Texaco China B.V., 330 F.3d 307 (5th Cir. 2003) (orders staying proceedings pending arbitration are not appealable) South La. Cement, Inc. v. Van Aalst Bulk Handling B.V., 383 F.3d 297 (5th Cir. 2004) (same) * Sphere Drake Ins. PLC v. Marine Towing, Inc., 16 F.3d 666 (5th Cir. 1994) (when separate action resolves nothing left in district court, it may be final)