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Checking the Box? Supreme Court Holds Order Compelling Arbitration Is Not Immediately Appealable

February 2, 2026

Plaintiffs cannot avoid arbitration through premature appeals challenging the validity of an arbitration agreement. In a landmark decision, the Supreme Court of Pennsylvania, in a 6-0 opinion, recently held that a trial court order compelling arbitration and staying court proceedings does not qualify as an immediately appealable collateral order under Pennsylvania Rule of Appellate Procedure 313. See Chilutti v. Uber Techs., Inc., --- A.3d ---, 2026 WL 156181 (Pa. Jan. 21, 2026). The impact of the Court’s decision clarifies that litigants may not immediately appeal an order compelling arbitration; instead, they must patiently await a final judgment to avail themselves of appellate relief.

Under Pennsylvania law, appellate courts have limited jurisdiction and may entertain appeals from final orders. See Pa.R.A.P. 341(a). In general, a final order disposes of all claims and parties. See Pa.R.A.P. 341(b)(1). Although an order denying a motion to compel arbitration is deemed final for appeal purposes under Pa.R.A.P. 311(b)(8) and 42 Pa. C.S. § 7320(a)(1), an appeal from an order compelling arbitration has no such finality under the Pennsylvania Code. One exception to the “final judgment” rule is the collateral order doctrine. Pennsylvania Rule of Appellate Procedure 313 allows parties to appeal as of right from an interlocutory collateral order. To qualify as a collateral order, (1) the order must be separate from and collateral to the main cause of action; (2) the right involved must be too important to be denied review; and (3) the question presented must be such that if review is postponed until final judgment, the claim will be irreparably lost. Pa.R.A.P. 313(b).

In Chilutti, Plaintiffs Keith and Shannon Chilutti filed a complaint against Uber Technologies, Inc. in the Philadelphia County Court of Common Pleas, alleging Ms. Chilutti sustained injuries during an Uber transport from a medical appointment to her home. In response, Uber filed a petition to compel arbitration, asserting Plaintiffs had agreed to arbitration at the time they enrolled in Uber. On April 26, 2021, the trial court granted Uber’s petition and stayed all court proceedings pending the resolution of arbitration.

The Chiluttis appealed the trial court’s order, arguing that an order granting compelled arbitration qualifies as an immediately appealable collateral order under Pennsylvania Rule of Appellate Procedure 313. The Chiluttis also asserted the Uber arbitration agreement was invalid because it deprived Plaintiffs of their constitutional right to a trial by jury. On appeal, the Superior Court reversed and remanded the trial court’s order, holding first that an order compelling arbitration satisfies the criteria for an immediately appealable collateral order. Chilutti v. Uber Techs., Inc., 300 A.3d 430, 439 (Pa. Super. 2023) (en banc). The Court reasoned that the third requirement for a collateral order was satisfied, as delaying review of a final judgment “may result in the irreparable loss of [the Chiluttis’] claims.” Id. Because the standard of review in common law arbitration appeals would be limited under 42 Pa. C.S. § 7341, the Court determined that appellant satisfied the third prong for collateral appeals under Pennsylvania Rule of Appellate Procedure 313. Id. Based on this reasoning, the Superior Court concluded it had jurisdiction to resolve the merits of the Chiluttis’ claim, and ultimately held the parties did not enter into a valid arbitration agreement. Id.

The Supreme Court of Pennsylvania granted review to determine whether the Superior Court lacked appellate jurisdiction to immediately review an interlocutory order staying litigation pending an arbitration. The Court reversed the lower court’s decision, holding that the Superior Court erred as a matter of law in determining the trial court’s order satisfied the third prong of the collateral order doctrine. Chilutti, 2026 WL 156181 *6. Relying upon the plain language of 42 Pa. C.S. § 7341, the Supreme Court reasoned that the limited standard of review applies only to arbitrators’ awards rendered in nonjudicial arbitration, not trial court decisions or orders. Id. at *5. To this end, because the basis of the Chilutti’s appeal would be predicated on a trial court order—and not a nonjudicial arbitration award—the litigants would not suffer irreparable loss of their rights under Pa.R.A.P. 313(b) by delaying appellate review of a trial court order granting compelled arbitration. Id. Writing for the Court, Justice Brobson opined that “[i]f the Chiluttis are later aggrieved by the final judgment that the trial court enters after the matter is returned to that court following arbitration, then the Chiluttis can appeal that judgment to the Superior Court.” Id. *6. Through this decision, the Court reaffirmed its commitment to the underlying policy of the final order doctrine, which promotes “formality, completeness, and efficiency.” Id. *4. Accordingly, the Superior Court lacked jurisdiction to consider the merits of the claims on appeal regarding the validity of the arbitration agreement. Id. *7.

The ramifications of the Court’s decision in Chilutti are significant for those navigating the complex intersection of arbitration and litigation. The Court’s decision is also a decisive victory for companies seeking to avoid premature appeals of trial court orders enforcing arbitration clauses. Companies and other enterprises should be conscious of appellate courts’ limited jurisdiction when entering into arbitration clauses. In cases where compelled arbitration is ordered by courts pursuant to an arbitration agreement, an immediate collateral appeal may not be taken as of right pursuant to the Supreme Court’s application of Pennsylvania Rule of Appellate Procedure 313(b). Instead, the aggrieved party must await a final order in the trial court (after arbitration proceedings conclude) before seeking appellate relief. The Supreme Court’s decision in Chilutti reinforces the importance of adopting well-drafted arbitration clauses when entering everyday business transactions. It also reaffirms the Pennsylvania judiciary’s fidelity to promoting freedom of contract, including through arbitration clauses, which may ensure confidentiality, reduce cost, and provide an alternative forum for dispute resolution.

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Thought Leadership

Florida Supreme Court Rules Florida Statute §627.70152 Does not Apply Retroactively

In a decision that resolves years of appellate uncertainty and confirms that insurers and insureds alike can rely on the legal framework in place when a policy is issued, the Supreme Court of Florida last week found that Florida Statute §627.70152, which involves an insured’s requirement to provide an insurer with pre-suit notice before filing a suit, cannot be applied retroactively. In Universal Property & Casualty Insurance Company v. Hughes, the Court was presented with the issue of whether the statutory pre-suit notice requirement applied retroactively and whether it would apply to a breach of contract of an insurance policy that was issued before the statute went into effect. Before the Court was an appeal from a homeowner, Ms. Hughes, who sued her insurance carrier, Universal Property & Casualty Insurance Company (Universal) for breach of contract under an insurance policy that was in effect from April 24, 2019 through April 24, 2020. During the policy period, Ms. Hughes suffered a loss and, on May 29, 2019, made a claim for water damage. The carrier investigated the loss and issued payment; Ms. Hughes disputed the payment, finding the amount insufficient for repairs. On July 1, 2021, Florida Statute §627.70152 went into effect, which required insureds to provide notice of intent to initiate litigation against the carrier prior to filing a lawsuit; if an insured filed the lawsuit without complying with §627.70152, a court must dismiss the case without prejudice. On August 4, 2021, Ms. Hughes filed her lawsuit against Universal for breach of contract. Universal moved to dismiss based on her failure to comply with §627.70152. Ms. Hughes contended the notice requirement could not be applied retroactively. The trial court disagreed and dismissed the lawsuit without prejudice, and Ms. Hughes appealed. During the appeal, the Fourth District Court of Appeal, in Cole v. Universal Property & Casualty, 363 So. 3d 1089 (Fla. 4th DCA 2023), ruled that Florida Statute §627.70152 did apply retroactively to policies issued before the effective date of §627.70152. However, the Sixth District Court agreed with Ms. Hughes and overturned the trial court’s ruling, finding the statute could not retroactively apply to policies issued prior to the statute effective date. Thereafter, the other district courts weighed in, with the Third District Court agreeing with the Fourth District Court, and the First, Second and Fifth District Courts agreeing with the Sixth District Court. In resolving the conflict amongst the district courts, the Supreme Court advised “as a general rule, ‘the statute in effect at the time an insurance contract is executed governs substantive issues arising in connection with that contract.’ Hassen v. State Farm Mut. Auto. Ins. Co., 674 So. 2d 106, 108 (Fla. 1996). The Court applied the two-step test when deciding whether a statute has retroactive application: “First, the Court must ascertain whether the Legislature intended for the statute to apply retroactively. Second, if such an intent is clearly expressed, the Court must determine whether retroactive application would violate any constitutional principles.” Menendez v. Progressive Exp. Ins. Co., 35 So. 3d 873, 877 (Fla. 2010). In analyzing the Legislature’s intent, the Court must determine whether the Legislature has manifested a clear command for retroactivity in the statutory text.  In review of the statutory text, the Court found nothing in the language of the statute to indicate that the phrase “all suits” was serving another purpose of expanding its reach to suits based on policies that both predate and postdate the enactment of the statute. Buis v. Universal Prop. & Cas. Ins. Co., 394 So. 3d 738, 741 (Fla. 2d DCA 2024). Further, the Court noted the statute has an effective date, which has long been considered to be evidence against retroactive application of a statute. The Court concluded that, on its face, no provision of §627.70152 speaks to application of the statute to insurance policies issued before the statute’s effective date and therefore, the Legislature did not clearly command retroactivity of the statute to include insurance policies issued prior to the enactment of the statute. The Court briefly reviewed Universal’s argument that the presuit notice requirement was procedural, not substantive, and therefore should be applied retroactively; however, the Court agreed with the Sixth District Court’s finding that, in its entirety, §627.70152 transformed an insured’s ability to sue an insurance company under a property insurance policy and an insurer’s obligations to respond to and pay insurance claims, thus making the requirement a substantive change. The Court thereby upheld the decision of the Sixth District and disapproved the decision of the Fourth District in Cole.

Thought Leadership

Commonwealth Court Reaffirms the Constitutionality of Act 111's IRE Provisions

In this case, the claimant sustained a work injury of January 6, 1994, which was acknowledged by Notice of Compensation Payable (NCP). After the claimant’s receipt of 104 weeks of temporary total disability benefits, the employer filed a Request for an Impairment Rating Examination (IRE). The IRE was performed in May 2023 and the IRE physician found that the claimant had a 5% whole person impairment, under the AMA Guides. The employer filed a Petition based on the IRE results, and the Petition was granted by the WCJ. During litigation, the claimant argued that the IRE provisions of Act 111 (Section 306(a.3) of the Act) were not applicable to her injury, since it predated June 24, 1996, the date Act 57 went into effect, and that the IRE provisions were unconstitutional. The Workers’ Compensation Judge (WCJ)) granted the Petition and the Board affirmed. On appeal to the Commonwealth Court, the claimant argued that Act 111 violated the nondelegation doctrine and that its retroactive application to the claimant’s injury was unconstitutional. The court rejected the arguments on the basis that they had already found the same arguments without merit in multiple, prior cases. The court also addressed an argument made by the claimant that Act 111 was procedurally defective under the Pennsylvania Constitution because it was only considered on two days in each House after having undergone amendments and reassignments. The court noted that the Pennsylvania Constitution requires every bill to be considered on three different days in each House. The claimant maintained that, according to the legislative history, the bill did not receive three separate days of consideration from each House when it was assigned a new bill number. The court pointed out, however, that the bill number, H.B. 1840 remained constant and was considered on three occasions by the House. Further, the court concluded that minor amendments to the bill were germane to its original subject, which was to modify the Act’s IRE process, in accordance with Protz II.

Thought Leadership

The Tolling Trap: Filing Alone Will Not Toll the Statute Without Good-Faith Service

The Eastern District of Pennsylvania recently reinforced a critical limitation on bad faith claims, holding that a timely filing alone will not preserve a cause of action absent a good-faith effort to serve the original process. The plaintiff had presented a claim for underinsured motorist benefits to his auto insurer. The insurer evaluated the claim and determined that the plaintiff’s accident-related damages did not exceed the bodily injury liability insurance limits of the at-fault driver and denied his claim. Among other claims, the plaintiff sought to present a claim for insurance bad faith under 42 Pa. C.S.A. § 8371, to which a two year statute of limitation applies. He first filed a praecipe for writ of summons before the expiration of the statute of limitation. However, the plaintiff did not attempt to serve the praecipe or writ until after the statute of limitations had expired. Additionally, the service failed as the plaintiff had mailed the original process to an incorrect address. Despite receipt of the Postal Service’s failure to deliver the original process, the plaintiff did not attempt to re-serve the writ. Two months later, the plaintiff filed a complaint and then successfully served that complaint. The insurer sought to dismiss the plaintiff’s bad faith claim as time-barred by the statute of limitations. The district court agreed. Though the plaintiff had filed a praecipe for a writ of summons prior to the expiration of the statute of limitations, the statute is only tolled if there is a good faith effort to serve that original process. In this case, the court determined that the plaintiff had failed to perform a “good faith effort to serve the original process”. Additionally, though the filing and service of a complaint can serve as alternative original process when the lawsuit is commenced by the filing of a praecipe for a writ of summons, the plaintiff filed his complaint after the statute of limitations had expired. The plaintiff’s bad faith claim was therefore determined to be barred by the statute of limitations and dismissed by the court, with prejudice. A key takeaway for the defense is not to assume that the statute of limitations has been successfully tolled by a plaintiff merely because a praecipe for a writ of summons or complaint has been filed prior to the expiration of the statute. A filed complaint or writ is only part of the equation. The defense should carefully review the docket and filings to confirm that the plaintiff also performed the requisite good faith effort to serve that original process. A thorough review of the docket may reveal that the plaintiff failed to make the good-faith service efforts necessary to toll the statute of limitations.