Jules v. Andre Balazs Properties
CourtSupreme Court of the United States
Date FiledMay 14, 2026
Docket25-83
JudgeSonia Sotomayor
StatusPublished
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Full Opinion
(Slip Opinion) OCTOBER TERM, 2025 1
Syllabus
NOTE: Where it is feasible, a syllabus (headnote) will be released, as is
being done in connection with this case, at the time the opinion is issued.
The syllabus constitutes no part of the opinion of the Court but has been
prepared by the Reporter of Decisions for the convenience of the reader.
See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.
SUPREME COURT OF THE UNITED STATES
Syllabus
JULES v. ANDRE BALAZS PROPERTIES ET AL.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR
THE SECOND CIRCUIT
No. 25–83. Argued March 30, 2026—Decided May 14, 2026
This case presents the question whether a federal court that has previ-
ously stayed claims in a pending action under §3 of the Federal Arbi-
tration Act (FAA) has jurisdiction to confirm or vacate a resulting ar-
bitral award on those claims, even when the motion to confirm under
§9 or the motion to vacate under §10 does not independently present a
basis for federal jurisdiction on its face.
Between 2017 and 2020, petitioner Adrian Jules worked at the Cha-
teau Marmont Hotel in Los Angeles, California. When the hotel ended
his employment in March 2020, Jules sued in Federal District Court
in New York, alleging that respondents unlawfully discriminated
against him in violation of federal and state law. Citing an arbitration
agreement Jules had signed before beginning work at the hotel, re-
spondents moved to stay federal proceedings pending arbitration un-
der §3 of the FAA. The District Court held that the arbitration agree-
ment covered Jules’s claims and stayed proceedings. Jules then
commenced arbitration against respondents. The arbitrator issued a
final award, ruling against Jules on all claims and awarding approxi-
mately $34,500 in sanctions to respondents. Back in the same District
Court that had previously stayed Jules’s claims pending arbitration,
respondents moved to confirm the award under §9. Jules opposed con-
firmation while cross-moving to vacate the arbitral award under §10
on various grounds. Jules argued that, under Badgerow v. Walters,
596 U. S. 1, the District Court lacked jurisdiction to confirm the award
because the §9 and §10 motions neither presented federal questions
nor satisfied the requirements for diversity jurisdiction. The District
Court disagreed and confirmed the arbitral award. The Second Circuit
affirmed, reasoning that Badgerow involved a freestanding action com-
menced for the sole purpose of vacating an arbitral award, but that the
2 JULES v. ANDRE BALAZS PROPERTIES
Syllabus
present action was distinct because it started as a federal-question suit
before it was stayed pending arbitration. The Second Circuit held that
a court with the power to stay an action under §3 has the further power
to confirm any ensuing arbitration award, regardless of whether there
is an independent jurisdictional basis for the §9 and §10 proceedings.
Held: A federal court that has previously stayed claims in a pending ac-
tion under §3 of the FAA has jurisdiction to confirm or vacate a result-
ing arbitral award on those claims as prescribed in §9 and §10 of the
FAA; nothing in the FAA precludes the normal operation of federal
jurisdiction regarding live claims pending before a federal court. Pp.
7–16.
(a) Unlike with the freestanding applications at issue in Vaden v.
Discover Bank, 556 U. S. 49, and Badgerow, assessing jurisdiction over
a §9 or §10 motion in a case originally filed in federal court does not
require “ ‘looking through’ ” the filed action “to the parties’ underlying
substantive controversy” outside of court. Vaden, 556 U. S., at 62. In-
stead, the court may assess its jurisdiction by looking at the suit that
is already before it. As Badgerow explained, “[j]urisdiction to decide
[a] case includes jurisdiction to decide [a] motion” within that case, and
usually “there is no need to ‘look through’ the motion in search of a
jurisdictional basis outside the court.” 596 U. S., at 15.
The District Court had original jurisdiction, under 28 U. S. C. §1331,
over Jules’s federal claims, and it was that very jurisdiction which au-
thorized the court to adjudicate the arbitrability of Jules’s claims un-
der the parties’ contract before staying litigation pending arbitration
pursuant to §3. Nothing in the FAA eliminated that jurisdiction while
the parties arbitrated. When the parties returned to court after arbi-
tration with §9 and §10 motions, the court had the same “jurisdiction
to decide the case,” and thus “jurisdiction to decide th[ose] motion[s],”
that it possessed from the start. Badgerow, 596 U. S., at 15.
This case therefore is not, as petitioner asserts, “Badgerow all over
again.” In Badgerow, the first and only thing that had occurred in
federal court was the confirm-or-vacate dispute under §9 and §10. In
that circumstance, there were only two places a court could look to find
federal jurisdiction: the face of the FAA motions or the underlying dis-
pute that “was not before” the court. Id., at 9. Here, however, there is
an obvious third place to look for jurisdiction: the original claims them-
selves, which were sufficient to establish the District Court’s jurisdic-
tion under 28 U. S. C. §1331.
The fact that the arbitral award may have resolved Jules’s original
claims only underscores why the District Court’s original jurisdiction
extended to the parties’ §9 and §10 motions. Those motions required
the District Court to assess whether there were grounds to vacate the
award. The motions were thus integral to determining whether the
Cite as: 608 U. S. ___ (2026) 3
Syllabus
award would continue to serve as a valid defense to the original claims
that had been stayed, but were still pending, in District Court until
the court confirmed the award.
Jules notes that, unlike dismissal based on an affirmative defense,
a §9 motion goes further and asks a court to convert an arbitral award
into a judgment of the court. That is correct, but federal courts have
the power to incorporate private settlements into orders of the court
when resolving claims that are the subject of those settlements, as rec-
ognized in Kokkonen v. Guardian Life Ins. Co. of America, 511 U. S.
375, as well as in the context of consent judgments and class-action
settlements.
The FAA’s structure further confirms jurisdiction here. In Smith v.
Spizzirri, 601 U. S. 472, the Court held that §3 requires a stay rather
than dismissal, which “comports with the supervisory role that the
FAA envisions for the courts,” including “assist[ing] parties in arbitra-
tion . . . and facilitating recovery on an arbitral award.” Id., at 478.
Under the rule the Court adopts today, this scheme continues to work
well: The FAA requires a stay so that a court that has granted a §3
stay can superintend the arbitration to the end, including through con-
firmation or vacatur under §9 or §10. Pp. 7–11.
(b) Jules’s remaining counterarguments are without merit. First,
Jules overreads Badgerow, which did not convert the nonjurisdictional
FAA into a comprehensive jurisdictional scheme that requires an in-
dependent jurisdictional basis for all §9 and §10 motions. The problem
for the losing party in Badgerow was that, without the look-through
approach authorized by §4, there was no federal jurisdiction to be
found in the case. See 596 U. S., at 9, 12. Because §9 and §10, unlike
§4, did not provide a textual basis for applying the look-through ap-
proach, the Court held that it was not available. Id., at 14. Respond-
ents here, to the contrary, are not asking for any “highly unusual” look-
through rule, id., at 12, but merely ask the District Court to use the
tools provided by the FAA to finally resolve the federal claims Jules
filed in federal court under 28 U. S. C. §1331.
Second, Jules argues that §9 and §10 applications should be treated
as entirely “new federal actions” for purposes of assessing jurisdiction,
even when filed in pre-existing suits, because §9 and §12 of the FAA
require service and notice of such applications. That argument fails.
The Court has explained that §3’s mandatory stay is aimed at
“avoid[ing] [the] costs and complications” of “bring[ing] a new suit.”
Spizzirri, 601 U. S., at 478. Jules concedes, moreover, that service of
§9 and §10 motions is not required in all cases. The service provisions
in §9 and §12 do not impose the strict jurisdictional rule he favors.
Third, Jules’s reliance on §8 of the FAA, which governs certain mar-
itime arbitrations, is unavailing. Section 8 merely instructs that in
4 JULES v. ANDRE BALAZS PROPERTIES
Syllabus
one class of admiralty cases involving in rem jurisdiction over a vessel,
the court holding the vessel must retain jurisdiction to confirm or va-
cate such award. It does not shed light on how jurisdiction should
function in other FAA disputes.
Finally, Jules’s policy concerns lack force. His concerns about en-
couraging parties to engage in useless federal litigation to create a ju-
risdictional anchor are conjectural, and there is no evidence suggesting
that his concerns about manufactured federal jurisdiction will come to
pass. Moreover, it is not anomalous for federal jurisdiction to turn on
how litigation proceeded, as “actual litigation” generally “define[s] the
parties’ controversy.” Vaden, 556 U. S., at 68. In any event, counter-
vailing policy concerns favor the Court’s rule. Jules’s rule would sig-
nificantly diminish “the supervisory role that the FAA envisions for
the courts,” Spizzirri, 601 U. S., at 478, and would undermine the effi-
ciency interests at the heart of the FAA by forcing parties to launch a
fresh state-court proceeding to secure confirmation or vacatur of an
arbitral award. Jules’s approach could also lead to unnecessarily com-
plex dual-track litigation where confirm-or-vacate proceedings com-
mence in state court just as arbitrability appeals begin in federal court.
Pp. 11–16.
Affirmed.
SOTOMAYOR, J., delivered the opinion for a unanimous Court.
Cite as: 608 U. S. ____ (2026) 1
Opinion of the Court
NOTICE: This opinion is subject to formal revision before publication in the
United States Reports. Readers are requested to notify the Reporter of
Decisions, Supreme Court of the United States, Washington, D. C. 20543,
pio@supremecourt.gov, of any typographical or other formal errors.
SUPREME COURT OF THE UNITED STATES
_________________
No. 25–83
_________________
ADRIAN JULES, PETITIONER v. ANDRE
BALAZS PROPERTIES, ET AL.
ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF
APPEALS FOR THE SECOND CIRCUIT
[May 14, 2026]
JUSTICE SOTOMAYOR delivered the opinion of the Court.
This case addresses whether a federal court that has pre-
viously stayed claims in a pending action under §3 of the
Federal Arbitration Act (FAA), 9 U. S. C. §1 et seq., has ju-
risdiction to confirm or vacate a resulting arbitral award as
to those claims under §9 and §10. The Court holds that it
does. Because a federal court in this scenario has jurisdic-
tion over the original claims and does not lose that jurisdic-
tion while the case is stayed pending arbitration, it retains
jurisdiction to determine whether the arbitral award re-
solving those claims is valid and should be confirmed. The
judgment of the Court of Appeals for the Second Circuit is
therefore affirmed.
I
A
The FAA “authorizes a party to an arbitration agreement
to seek several kinds of assistance from a federal court.”
Badgerow v. Walters, 596 U. S. 1, 4 (2022). At the front end,
§3 of the FAA directs federal courts to stay any lawsuit that
involves an issue that is “referable to arbitration,” and §4
allows federal courts to compel arbitration if a party to an
2 JULES v. ANDRE BALAZS PROPERTIES
Opinion of the Court
arbitration agreement refuses to arbitrate. During arbitra-
tion, federal courts may facilitate the proceedings, includ-
ing by appointing an arbitrator under §5 and enforcing sub-
poenas under §7. On the back end, and central here, after
an arbitral award has issued, federal courts may confirm,
vacate, or modify such an award under §9, §10, or §11. Un-
der §9, a court must confirm an award upon request “unless
the award is vacated, modified, or corrected as prescribed
in sections 10 and 11.” The grounds for vacatur and modi-
fication are limited. See §10(a) (allowing vacatur for “cor-
ruption, fraud, or undue means,” “partiality” or “miscon-
duct” by an arbitrator, and “where the arbitrators exceeded
their powers”); §11 (allowing modification of “material mis-
calculation[s]” and in other narrow circumstances).
An FAA motion can arrive in federal court in one of two
ways. Sometimes (like in this case), an FAA motion arises
in a pre-existing lawsuit. In such cases, one party files a
federal suit and the other responds by arguing that the dis-
pute is arbitrable and so should not go forward in court. If
the latter party is right, the court must stay proceedings
pending arbitration under §3 and, upon request, must com-
pel arbitration under §4.1 (What else a court may do in this
scenario, including with respect to §9 and §10 motions filed
after arbitration has concluded and the parties return to
court, is the subject of this appeal.) In other cases, a “free-
standing” FAA motion can arrive in federal court outside of
any pre-existing federal case. For example, the parties may
proceed directly to arbitration under their contract but need
assistance enforcing a subpoena, and so apply to a court for
aid under §7. Or one party may refuse to respond to an out-
of-court arbitration demand at all, and the other side may
seek an order compelling arbitration under §4.
——————
1 As discussed below, see infra, at 10, this Court has held that §3 does
not authorize a district court to dismiss a case after finding it to be arbi-
trable; the text of §3 says that a federal court “shall . . . stay” proceedings,
so a stay is required. Smith v. Spizzirri, 601 U. S. 472, 476 (2024).
Cite as: 608 U. S. ____ (2026) 3
Opinion of the Court
Regardless of how an FAA dispute begins, federal juris-
diction is not always a foregone conclusion. For a federal
court to have jurisdiction over an arbitral dispute, it is not
enough that the dispute implicates the FAA. That is be-
cause the FAA is “ ‘something of an anomaly’ in the realm
of federal legislation.” Vaden v. Discover Bank, 556 U. S.
49, 59 (2009). Although the FAA is a federal statute that
provides federal standards, it “does not itself create [fed-
eral] jurisdiction.” Badgerow, 596 U. S., at 4. Instead,
given the FAA’s “nonjurisdictional cast,” a federal court
must have an “ ‘independent jurisdictional basis’ ” for grant-
ing FAA relief. Vaden, 556 U. S., at 59. That could come,
for example, in the form of diversity jurisdiction if a dispute
under the FAA arises between citizens of different States
with over $75,000 at issue. See 28 U. S. C. §1332(a). Or a
court may have federal-question jurisdiction if an FAA mo-
tion implicates a federal issue (other than one under the
FAA). See §1331.
In two prior cases, this Court has addressed how to assess
jurisdiction over FAA motions filed as “freestanding” ac-
tions in federal court. First, in Vaden v. Discover Bank, the
Court held that §4 permits courts to assess jurisdiction by
“ ‘looking through’ ” a motion to compel arbitration to the
underlying dispute. 556 U. S., at 62. There, the parties be-
gan with a contract dispute in state court, but after one side
filed counterclaims, the other side filed a §4 motion in fed-
eral court invoking the contract’s arbitration agreement.
Id., at 54–55. The §4 motion itself did not present a federal
question; it invoked only a contractual right to arbitrate.
Id., at 63. Nor was diversity jurisdiction available. Id., at
54, n. 1. Yet this was not the end of the matter. As the
Court observed, §4’s text authorizes relief if a court, “ ‘save
for [the arbitration] agreement, would have jurisdiction’ ”
over the dispute. Id., at 62. The Court thus held that courts
should determine §4 jurisdiction “by ‘looking through’ a §4
petition to the parties’ underlying substantive controversy,”
4 JULES v. ANDRE BALAZS PROPERTIES
Opinion of the Court
even though that controversy is not before the federal court.
Id., at 62–63. If that “ ‘controversy between the parties,’ as
they have framed it, could be litigated in federal court,”
even if no such claim was ever filed in federal court, a court
has jurisdiction to compel arbitration. Id., at 66.
Second, in Badgerow v. Walters, the Court concluded that
Vaden’s look-through approach does not apply to freestand-
ing motions to confirm or vacate arbitral awards under §9
or §10. 596 U. S., at 5. The parties in Badgerow began by
proceeding directly to an arbitration of federal claims with-
out filing suit in any court and without filing any §3 or §4
motion. Ibid. After the arbitration resolved the federal
claims at issue, one party sought confirmation of the award
in federal court, while the other sought vacatur. Ibid. Like
in Vaden, the FAA motions presented no (non-FAA) federal
question on their face, and the parties were not diverse. 596
U. S., at 9. The Court thus considered whether Vaden’s
“ ‘look-through’ approach to jurisdiction applies to requests
to confirm or vacate arbitral awards under the FAA’s Sec-
tions 9 and 10.” 596 U. S., at 5.
The Court held that it does not. The look-through ap-
proach, the Court emphasized, is a “highly unusual” “juris-
dictional outlier.” Id., at 12, 14. That is because the look-
through approach “locates jurisdiction not in the action ac-
tually before the court, but in another controversy neither
there nor ever meant to be.” Id., at 12; see id., at 9 (similar).
Vaden grounded its anomalous approach largely in §4’s
“ ‘save for’ ” language, whereas “Sections 9 and 10,” the
Court observed, “contain none of the statutory language on
which Vaden relied.” 596 U. S., at 10–11. Accordingly,
Badgerow held that a court presented with a freestanding
§9 or §10 motion may not look through that motion to a con-
troversy involving a federal issue that is “not before the
court” in order to establish jurisdiction. Id., at 5.
Cite as: 608 U. S. ____ (2026) 5
Opinion of the Court
B
Between 2017 and 2020, petitioner Adrian Jules worked
at the Chateau Marmont Hotel in Los Angeles, California.
In March 2020, the hotel ended his employment, citing
staffing issues related to the COVID–19 pandemic. Jules
then sued in Federal District Court in New York (where
several respondents are domiciled), alleging, among other
things, that respondents unlawfully discriminated against
him in violation of federal and state law.
Jules, however, had signed an arbitration agreement be-
fore beginning work at the hotel, which stated that any dis-
putes related to his employment or termination thereof that
could not be resolved by negotiation or mediation must be
resolved by arbitration. Citing this agreement, respond-
ents moved, as relevant here, to stay federal proceedings
pending arbitration under §3. In 2021, the District Court
held that the arbitration agreement covered Jules’s claims
and stayed proceedings.
Jules then commenced arbitration against respondents.
In 2023, the arbitrator issued a final award ruling against
Jules on all claims. In addition, the arbitrator awarded
about $34,500 in sanctions to respondents based on Jules’s
and his attorney’s misconduct (which included Jules refus-
ing to participate in the arbitral hearing on Jules’s claims).
Back in District Court, before the same court that had
previously stayed Jules’s claims pending arbitration, re-
spondents moved to confirm the award under §9. Jules op-
posed confirmation while cross-moving to vacate the arbi-
tral award under §10 on various grounds. Relevant here,
Jules argued that, under Badgerow, the District Court
lacked jurisdiction to confirm the award because the §9 and
§10 motions did not present federal questions or satisfy the
requirements for diversity jurisdiction, given that the par-
ties to the arbitration and award were nondiverse and the
amount in controversy was less than $75,000.
6 JULES v. ANDRE BALAZS PROPERTIES
Opinion of the Court
The District Court disagreed and confirmed the arbitral
award. The Second Circuit affirmed. Badgerow, the Second
Circuit emphasized, “involved [a freestanding] action com-
menced . . . for the sole purpose of vacating an arbitral
award.” App. to Pet. for Cert. 6a (Pet. App.). That made it
fundamentally “unlike the present action, which started as
a federal question suit before it was stayed pending arbitra-
tion.” Ibid. In the latter situation, the Court of Appeals
reasoned, “the Supreme Court has held that a ‘court with
the power to stay the action under §3 has the further power
to confirm any ensuing arbitration award,’ ” regardless of
whether there is an independent jurisdictional basis for the
§9 and §10 proceedings. Ibid. (quoting Cortez Byrd Chips,
Inc. v. Bill Harbert Constr. Co., 529 U. S. 193, 202 (2000);
alteration omitted). Because nothing in Badgerow under-
mined this principle, the Second Circuit held that the Dis-
trict Court had jurisdiction to confirm the award. See Pet.
App. 7a.
Jules filed a timely petition for a writ of certiorari seeking
review of the Second Circuit’s conclusion that Badgerow’s
holding is limited to freestanding §9 and §10 applications
without a pre-existing federal lawsuit. Two other Courts of
Appeals have agreed with the Second Circuit after
Badgerow, but the Fourth Circuit has held that Badgerow’s
holding applies to all §9 and §10 motions, regardless of
whether claims were filed in federal court before they were
resolved in arbitration. Compare George v. Rushmore Serv.
Center, LLC, 114 F. 4th 226, 238, n. 16 (CA3 2024), and
Kinsella v. Baker Hughes Oilfields Operations, LLC, 66 F.
4th 1099, 1103 (CA7 2023), with SmartSky Networks, LLC
v. DAG Wireless, LTD., 93 F. 4th 175, 183 (CA4 2024). This
Court granted certiorari to resolve the division among the
Courts of Appeals. 607 U. S. 1079 (2025).
Cite as: 608 U. S. ____ (2026) 7
Opinion of the Court
II
This case asks whether a federal court with pre-existing
jurisdiction over claims that it stayed pending arbitration
under §3 can adjudicate a §9 or §10 motion even if that mo-
tion does not present, on its face, an independent basis for
federal jurisdiction. The answer is yes. “[A] court with the
power to stay the action under §3 has the further power to
confirm [or vacate] any ensuing arbitration award.” Cortez
Byrd, 529 U. S., at 202 (addressing a different, venue-re-
lated question under the FAA).
To start, unlike with the freestanding applications at is-
sue in Vaden and Badgerow, see supra, at 3–4, assessing
jurisdiction over a §9 or §10 motion in a case originally filed
in federal court does not require “looking through” the filed
action. Instead, the court may assess its jurisdiction by
looking at the suit that is already before it. As Badgerow
explained, “[j]urisdiction to decide [a] case includes jurisdic-
tion to decide [a] motion” within that case, and usually
“there is no need to ‘look through’ the motion in search of a
jurisdictional basis outside the court.” 596 U. S., at 15.
Here, the District Court had original jurisdiction, under
28 U. S. C. §1331, over Jules’s federal claims. It was this
very jurisdiction that authorized the court to adjudicate the
arbitrability of Jules’s claims under the parties’ contract to
begin with, before staying litigation pending arbitration.
Nothing in the FAA eliminated that jurisdiction while the
parties arbitrated. See Hall Street Associates, L. L. C. v.
Mattel, Inc., 552 U. S. 576, 581 (2008) (“As for jurisdiction
over controversies touching arbitration, the [FAA] does
nothing”). So when the parties returned to court after arbi-
tration with §9 and §10 motions, the court had the same
“jurisdiction to decide the case,” and thus “jurisdiction to
decide th[ose] motion[s],” that it possessed from the start.
Badgerow, 596 U. S., at 15. “The court had federal question
subject matter jurisdiction and . . . never lost it.” 1 I.
8 JULES v. ANDRE BALAZS PROPERTIES
Opinion of the Court
Macneil, R. Speidel, & T. Stipanowich, Federal Arbitration
Law §9.2.3.1, p. 9:13 (1995).
The District Court’s pre-existing jurisdiction means that
this case is not “Badgerow all over again.” Contra, Brief for
Petitioner 3. In Badgerow, the first (and only) thing that
had occurred in federal court was the confirm-or-vacate dis-
pute under §9 and §10. See 596 U. S., at 5–6. In that cir-
cumstance, there were only two places a court could look to
find federal jurisdiction: the face of the FAA motions, on the
one hand, or the underlying dispute that “was not before”
the court, on the other. Id., at 9. Here, however, there is
an obvious third place to look for jurisdiction: the original
claims themselves. Because those claims were sufficient to
establish the District Court’s jurisdiction in this case under
28 U. S. C. §1331, they also established the District Court’s
authority to resolve the motions to confirm or vacate the
arbitral award resolving those claims.
It is true that, by the time the parties filed the §9 and §10
motions here, the arbitrator had issued an award that
marked “a contractual resolution of the parties’ dispute.”
596 U. S., at 9. As Jules argues, that out-of-court resolution
functioned like a release, which could serve as an affirma-
tive defense and be used to “resolve the original claim” filed
in court. Reply Brief 15 (citing Federal Rule of Civil Proce-
dure 8(c)(1), which lists “arbitration and award” as an “af-
firmative defense”). The fact that the arbitral award may
“resolve” Jules’s original claims, however, only underscores
why the District Court’s original jurisdiction extends to the
parties’ §9 and §10 motions. Those motions required the
District Court to assess whether there were grounds to va-
cate the award. See §9 (requiring confirmation “unless the
award is vacated . . . as prescribed in sectio[n] 10”). They
were thus integral to determining whether the award would
continue to serve as a valid defense to the original claims
that had been stayed, but were still pending, in District
Court until the court confirmed the award. Cf. Judgment
Cite as: 608 U. S. ____ (2026) 9
Opinion of the Court
in No. 1:20–cv–10500 (SDNY), ECF Doc. 118, p. 1 (confirm-
ing arbitral award against Jules and entering judgment on
Jules’s claims).
Jules notes that, unlike dismissal based on an affirmative
defense, a §9 motion goes further and asks a court to con-
vert an arbitral award into a judgment of the court. See §13
(stating that an order confirming an arbitral award has the
“same force and effect” as a judgment in a federal action).
That is correct, but this Court has held that federal courts
have the power to incorporate private settlements into or-
ders of the court when resolving claims that are the subject
of those settlements. In Kokkonen v. Guardian Life Ins. Co.
of America, 511 U. S. 375 (1994), for example, the Court
made clear that a federal “court is authorized to embody [a]
settlement contract in its dismissal order” and later “en-
forc[e]” that “settlement agreement.” Id., at 381–382.2
Similarly, the Court has recognized federal courts’ jurisdic-
tion to embody contracts “arrived at by negotiation between
the parties” as consent judgments in certain circumstances.
United States v. ITT Continental Baking Co., 420 U. S. 223,
237, n. 10 (1975) (noting the “dual character” of such judg-
ments). Federal courts also routinely resolve disputes over
private settlements in class actions, which can be settled
“only with the court’s approval.” Fed. Rule Civ. Proc. 23(e);
see, e.g., Sullivan v. DB Invs., Inc., 667 F. 3d 273, 293 (CA3
2011) (en banc) (addressing disputes over class settlement
that included an “agreed-upon injunction”). In each sce-
nario, as here, the parties reach a contractual resolution of
——————
2 A court’s original jurisdiction to embody a private settlement in a
court order is distinct from any ancillary-enforcement jurisdiction to ad-
judicate disputes that later arise out of such an agreement. The former
falls within a court’s original jurisdiction to resolve still-pending claims
under conditions deemed proper by the court. The Court today does not
address respondents’ argument that the §9 and §10 motions in this case
fell within the District Court’s ancillary-enforcement jurisdiction. See
Brief for Respondents 26 (citing Kokkonen, 511 U. S., at 380–381).
10 JULES v. ANDRE BALAZS PROPERTIES
Opinion of the Court
claims filed in federal court, and the federal court has juris-
diction to resolve disputes over that private settlement and
embody the settlement in a court order resolving the case.
The FAA’s structure further confirms jurisdiction here.
This Court recently considered “whether §3 permits a court
to dismiss [a] case instead of issuing a stay when the dis-
pute is subject to arbitration and a party requests a stay
pending arbitration.” Smith v. Spizzirri, 601 U. S. 472, 474
(2024). Given that §3 dictates that courts in this situation
“ ‘shall . . . stay’” proceedings, the Court easily concluded
that “a stay,” not dismissal, “is required.” Id., at 476–477.
This conclusion, the Court emphasized, “comport[ed] with
the supervisory role that the FAA envisions for the courts,”
which includes “assist[ing] parties in arbitration by . . . ap-
pointing an arbitrator, see 9 U. S. C. §5; enforcing subpoe-
nas . . . , see §7; and facilitating recovery on an arbitral
award, see §9.” Id., at 478. “Keeping [a] suit on the court’s
docket makes good sense in light of this potential ongoing
role, and it avoids costs and complications that might arise
if a party were required to bring a new suit and pay a new
filing fee to invoke the FAA’s procedural protections.” Ibid.
Under the rule the Court adopts today, this scheme con-
tinues to work well: The FAA requires a stay, rather than
dismissal, so that a court that has granted a §3 stay can
superintend the arbitration to the end, including through
confirmation or vacatur. On Jules’s theory, however, things
would fall apart. Without an independent jurisdictional ba-
sis (like complete diversity and more than $75,000 at stake)
on the face of a §5, §7, §9, or §10 motion, Jules concedes that
a court that grants a mandatory §3 stay has little to do but
wait until the arbitration concludes and, finally, dismiss
the claims. It would be curious for §3 to mandate keeping
cases on federal dockets for essentially no reason at all in
the cases where federal interests are likely at their highest:
those, like this one, involving live federal questions. More
plausibly, a court that grants a §3 stay retains jurisdiction
Cite as: 608 U. S. ____ (2026) 11
Opinion of the Court
to see the case through and provide the FAA’s “procedural
protections” along the way. Ibid.
III
Jules’s remaining counterarguments are without merit.
First, and primarily, he points to Badgerow. In his view,
Badgerow makes clear that the FAA is a “reticulated”
framework whose “text,” alone, governs federal jurisdiction
over FAA disputes and requires an independent jurisdic-
tional basis for all §9 and §10 motions. Reply Brief 1–2. As
explained, however, this overreads Badgerow, which no-
where converted the “nonjurisdictional” FAA, Vaden, 556
U. S., at 59, into a “reticulated” jurisdictional scheme. The
problem for the losing party in Badgerow was that, without
the look-through approach authorized by §4, there was no
federal jurisdiction to be found in the case. See 596 U. S.,
at 9, 12. Because §9 and §10 did not provide a textual basis
for applying the look-through approach, the Court held that
it was not available. Id., at 14. Respondents here, to the
contrary, are not asking for any “highly unusual” look-
through rule. Id., at 12. Instead, the court in this case se-
cured federal jurisdiction, in one of the most usual ways im-
aginable, based on the federal claims Jules filed in federal
court under 28 U. S. C. §1331. Respondents merely asked
the District Court to use the tools provided by the FAA to
finally resolve those claims. Nothing in Badgerow or the
FAA eliminates the District Court’s jurisdiction to do so.3
Second, Jules disputes whether §9 and §10 applications
should really be considered motions in a pending case.
——————
3 Jules focuses on Badgerow’s observation that confirm-or-vacate dis-
putes like this one typically “involve only state law, like disagreements
about other contracts.” 596 U. S., at 9. It is true that federal courts
ordinarily lack freestanding authority to adjudicate state-law claims.
See, e.g., Kokkonen, 511 U. S., at 378–381. That has never prohibited
federal courts, however, from resolving disputes over, and giving force to,
private settlements when they resolve claims that are pending in federal
court. See id., at 381–382; supra, at 9–10.
12 JULES v. ANDRE BALAZS PROPERTIES
Opinion of the Court
Instead, he argues, they should be treated as entirely “new
federal actions” for purposes of assessing jurisdiction, even
when filed in pre-existing suits, because §9 and §12 of the
FAA require service and notice of such applications. Brief
for Petitioner 22–23. This Court has explained, however,
that §3’s mandatory stay is aimed precisely at “avoid[ing]
[the] costs and complications” of “bring[ing] a new suit,”
Spizzirri, 601 U. S., at 478, and even Jules admits that nei-
ther service of process nor a whole new proceeding is always
necessary, see Reply Brief 6, n. 1. The service provisions in
§9 and §12 (the latter of which, governing service of §10 mo-
tions, does not even mention “jurisdiction”) do not impose
the strict jurisdictional rule Jules favors.
Third, Jules turns to §8 of the FAA, which governs certain
maritime arbitrations. Section 8 provides that, when “the
basis of jurisdiction” is “in admiralty,” a party may “begin
his proceeding . . . by libel and seizure of the vessel.” Jules
notes that in such cases, §8 also provides that “the court
shall then have jurisdiction to direct the parties to proceed
with the arbitration and shall retain jurisdiction to enter
its decree upon the award.” To Jules, this shows that Con-
gress knew how to authorize the kind of “jurisdictional an-
chor” respondents seek here, yet declined to provide such a
basis for jurisdiction in §9 or §10.
The Court disagrees. Section 8 merely instructs that, in
one class of admiralty cases where a plaintiff invokes in rem
jurisdiction over a vessel “as security for compliance with
any arbitral award,” The Anaconda v. American Sugar Re-
fining Co., 322 U. S. 42, 44 (1944), the court holding the
vessel must retain jurisdiction to confirm or vacate such
award. District courts would likely have jurisdiction over
such proceedings even without §8 under 28 U. S. C. §1333,
which provides “original jurisdiction” over admiralty cases.
It appears, then, that §8 does little more than provide spe-
cific procedural rules governing how courts ought to handle
a distinct form of admiralty arbitration involving seized
Cite as: 608 U. S. ____ (2026) 13
Opinion of the Court
vessels. It does not shed light on how jurisdiction, more
broadly, should function in other FAA disputes.
Finally, Jules resorts to policy. Allowing courts to exer-
cise jurisdiction in cases like this one, he worries, will en-
courage parties to “engage in useless federal litigation for
the sole purpose of creating a jurisdictional anchor” later
on, Brief for Petitioner 34, disrupting the “ ‘sensible . . . di-
vision of labor’ ” between state and federal courts that
Badgerow recognized, Brief for Petitioner 31 (quoting 596
U. S., at 18). Even without such gamesmanship, he contin-
ues, respondents’ rule will make federal jurisdiction turn on
the “happenstance” of whether one party to an arbitral dis-
pute filed a federal case before proceeding to arbitration.
Brief for Petitioner 14.
Setting aside that “ ‘[i]t is not for this Court to employ un-
tethered notions of what might be good public policy to [de-
termine] our jurisdiction,’ ” Badgerow, 596 U. S., at 16,
Jules’s policy arguments lack force on their own terms. For
one thing, his concerns about protective anchor suits are
conjectural. Even in courts that have long embraced
Badgerow’s rule for freestanding §9 and §10 motions but
agree with the result the Court reaches today for pre-exist-
ing cases, Jules identifies no epidemic of useless filings clog-
ging up federal courts.4 That may be because filing a pre-
cautionary federal anchor suit runs a serious risk of
forfeiting the right to arbitrate. Cf. Morgan v. Sundance,
Inc., 596 U. S. 411, 413, 418–419 (2022). Or it may be
——————
4 The Seventh Circuit has embraced both rules since at least 1998. See
Baltimore & Ohio Chicago Terminal R. Co. v. Wisconsin Central Ltd.,
154 F. 3d 404, 407 (1998) (adopting today’s result for pre-existing suits);
Minor v. Prudential Securities, Inc., 94 F. 3d 1103, 1106–1107 (1996)
(adopting the Badgerow rule for freestanding actions). The Third Circuit
is similar. See Goldman v. Citigroup Global Markets, Inc., 834 F. 3d 242,
252–255 (2016) (explaining that the Third Circuit has applied the
Badgerow rule for freestanding actions since at least 1994); Freeman v.
Pittsburgh Glass Works, LLC, 709 F. 3d 240, 246 (2013) (adopting today’s
result for pre-existing suits).
14 JULES v. ANDRE BALAZS PROPERTIES
Opinion of the Court
because securing a postarbitration federal forum is not all
that valuable to parties who, on the front end, do not know
whether they will emerge from arbitration a winner or loser
and thus may not be able to tell which forum’s law might
prove most advantageous. Either way, there is no evidence
suggesting that Jules’s concerns about manufactured fed-
eral jurisdiction will come to pass. There thus seems to be
little risk that confirm-or-vacate litigation will flood federal
courts. The “typical FAA application” under §9 and §10, af-
ter all, likely involves those who adhered to their arbitra-
tion agreements to begin with. Badgerow, 596 U. S., at 15.
Nor is it anomalous for federal jurisdiction to turn, at
least in part, on the happenstance of how litigation pro-
ceeded. “[A]ctual litigation” generally “define[s] the parties’
controversy,” even if “events could have unfolded differ-
ently.” Vaden, 556 U. S., at 68. “[A] party’s ability to gain
adjudication . . . in federal court often depends on how that
question happens to have been presented.” Ibid., n. 17; see,
e.g., Kokkonen, 511 U. S., at 380–382 (explaining that juris-
diction may depend on whether a court happened to “retain
jurisdiction” expressly over a settlement agreement).
In any event, even if Jules’s policy concerns had some
merit, there are countervailing concerns on the other side.
Jules’s rule would significantly diminish “the supervisory
role that the FAA envisions for the courts,” Spizzirri, 601
U. S., at 478, by forcing them to stay proceedings under §3
for essentially no reason in most cases. It would also un-
dermine the efficiency interests at the heart of the FAA by
forcing parties who were previously in federal court (often,
as here, against their wishes) to launch a fresh state-court
proceeding, complete with “a new filing fee,” to secure con-
firmation or vacatur of an arbitral award. Ibid.; cf. Hall
Street, 552 U. S., at 588 (noting that §§9–11 “substantiat[e]
a national policy favoring arbitration” by helping to “re-
solv[e] disputes straightaway”).
Cite as: 608 U. S. ____ (2026) 15
Opinion of the Court
Jules’s approach could also lead to unnecessarily complex
dual-track litigation. Here, as is often the case when a §3
stay is needed, the parties disputed not only whether the
arbitral award should be confirmed or vacated, but also
whether the dispute was arbitrable to begin with. See Pet.
App. 4a–5a. Because orders staying an action pending ar-
bitration under §3 or compelling arbitration under §4 can
generally be appealed only after final judgment, see §16(b),
such appeals will usually occur only after an arbitral award
issues and the claims pending in federal court are dis-
missed. That process neatly unfolded here: The same Dis-
trict Court that initially held Jules’s claims to be arbitrable
later confirmed the resulting award and entered judgment;
then, both the arbitrability and confirmation issues went
up to the Second Circuit together. Under Jules’s preferred
rule, however, confirm-or-vacate proceedings would likely
commence in state court just as the arbitrability appeal be-
gins in federal court. At that point, a state court may con-
firm an arbitral award on claims that a federal court of ap-
peals may ultimately hold were never properly subject to
arbitration in the first place.5 It is unclear why Congress
would have wanted wasteful, bifurcated, and possibly in-
consistent proceedings like that.
* * *
In Badgerow, the question was whether anything in §9 or
§10 of the FAA affirmatively authorized an unusual ap-
proach premising jurisdiction on claims never filed before
the court. Here, the question is instead whether there is
anything in the FAA that precludes the normal operation of
——————
5 Alternatively, a district court seeking to avoid such bifurcated pro-
ceedings could continue holding the pending claims on its docket, pre-
cluding an appeal of the arbitrability issue, until the state-court confirm-
or-vacate proceedings conclude, possibly months (or years) later. There
is no apparent reason why Congress would have preferred these point-
less, extended stays to a simple consolidated proceeding and appeal.
16 JULES v. ANDRE BALAZS PROPERTIES
Opinion of the Court
federal jurisdiction regarding live claims that are still pend-
ing before a federal court. There is not. A federal court with
jurisdiction to stay claims pending arbitration under §3 of
the FAA has the same jurisdiction to resolve motions to con-
firm or vacate a resulting arbitral award. The judgment of
the Court of Appeals, accordingly, is affirmed.
It is so ordered.