Opinion ID: 174092
Heading Depth: 1
Heading Rank: 10

Heading: Order enjoining arbitration

Text: UMB asserts the district court's order enjoining arbitration was a violation of the due process clause because it was issued without notice and because UMB did not have the opportunity to be heard on the matter. However, the district court has the inherent ability to protect its own jurisdiction over the dispute pending before it. In re Y & A Group Sec. Litig., 38 F.3d 380, 382-83 (8th Cir.1894) (The All Writs Act makes plain that each federal court is the sole arbiter of how to protect its own judgments: federal courts `may issue all writs necessary ... in aid of their respective jurisdictions....' 28 U.S.C. § 1651(a).). UMB sought to join BOAIS as a necessary party in the lawsuit, and eventually succeeded in doing so. UMB was aware of the pending district court litigation when it filed the FINRA arbitration without waiting for the district court's decision on the motion to compel arbitration. The district court issued the order enjoining arbitration sua sponte to clarify its intention that the parties not arbitrate while the court considered the issue, after FINRA informed the court that it would allow the arbitration to proceed unless specifically enjoined from doing so. The district court did not err in temporarily enjoining the parties from participating in binding arbitration on a matter which UMB was attempting simultaneously to litigate in district court.