An Analysis of an Order to Compel Arbitration: To Dismiss or Stay?

22 Pages Posted: 30 Sep 2010 Last revised: 15 Feb 2012

Melanie A. Goff

affiliation not provided to SSRN

Richard A. Bales

Ohio Northern University - Pettit College of Law

Date Written: September 30, 2010

Abstract

The Federal Arbitration Act makes arbitration agreements judicially enforceable. Often, however, one party to a dispute would prefer to litigate, and files suit on the underlying claim. The party preferring arbitration may then file a motion to compel arbitration. If the court grants the motion, the court must then decide whether to stay the suit during the pendency of the arbitration proceedings, or whether to dismiss the suit outright. Though this issue has arisen thousands of times, in probably every federal district court in the country, there is no clear answer as to whether courts should stay or dismiss. This article argues that courts should stay a case when some points of dispute between the parties fall outside the arbitration agreement and cannot be resolved by the arbitrator, and that otherwise courts should have the discretion to dismiss the case in favor of arbitration.

Keywords: FAA, Arbitration, Stay, Dismiss, Compel

Suggested Citation

Goff, Melanie A. and Bales, Richard A., An Analysis of an Order to Compel Arbitration: To Dismiss or Stay? (September 30, 2010). Penn State Law Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1685308

Melanie A. Goff

affiliation not provided to SSRN ( email )

Richard A. Bales (Contact Author)

Ohio Northern University - Pettit College of Law ( email )

525 South Main Street
Ada, OH 45810
United States
419-772-2205 (Phone)

HOME PAGE: http://law.onu.edu/node/3073

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