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Legal Memorandum: Denial of a Motion to Stay Pending Arbitration

Issue: When should a court deny a motion to stay proceedings pending arbitration?

Area of Law: Alternative Dispute Resolution, Litigation & Procedure
Keywords: Motion to stay proceedings pending arbitration; Denial
Jurisdiction: Federal
Cited Cases: None
Cited Statutes: 9 U.S.C. § 3
Date: 05/01/2007

It is well established that the party seeking a stay of judicial proceedings pending arbitration pursuant to 9 U.S.C. § 3 bears the burden to show the matter is properly referable to arbitration.  Am. Fin. Capital Corp. v. Princeton Electronic Prods., No. CIV. A. 95-4568 (E.D. Pa. Mar. 20, 1996); see Nederlandse Erts-Tankersmaatschappij v. Isbrandtsen Co., 339 F.2d 440, 442 (2d Cir. 1964) (defendants who seek stay have burden of establishing such stay is warranted); Miletic v. Holm & Wonsild, 294 F. Supp. 772, 774 (S.D.N.Y. 1968) (“The burden is on the party seeking a stay to satisfy the court that a matter is referable to arbitration.”).

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