Pre-Paid Legal Services, Inc. v. Cahill

MATHESON, Circuit Judge.

Pre-Paid Legal Services, Inc., d.b.a. Le-galShield (“Pre-Paid”), sued Todd Cahill, its former employee, alleging tort and contract violations. Mr. Cahill removed the case from state to federal court based on diversity jurisdiction, and moved to stay the district court proceedings under the Federal Arbitration Act (“FAA”) so the parties could pursue arbitration. The FAA requires a court to stay its proceedings pending arbitration provided “the applicant for the stay is not in default in proceeding with the arbitration.” 9 U.S.C. § 3. The district court granted Mr.…