Legal Memorandum: Stay of Proceedings Pending Arbitration

Issue: When is it appropriate for a court to grant a motion to stay proceedings to refer a matter to arbitration?

Area of Law: Alternative Dispute Resolution
Keywords: Stay of proceedings; Arbitration
Jurisdiction: Federal
Cited Cases: None
Cited Statutes: 9 U.S.C. § 3
Date: 11/01/2007

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 Elec. 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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