Virginia Motion to Stay Action Pending Arbitration

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Multi-State
Control #:
US-02643BG
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Word; 
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Description

Motion to stay and abate refers to a motion filed to abate to stop or suspend the proceeding for some other action to take place. The movant usually wants to maintain the status quo until the other proceeding is finished, to prevent a waste of time or judicial resources and to preserve the statute of limitations periods.

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FAQ

Stat. Ann. § 731.401; SDCL § 55-1-54. Absent such a specific statutory provision, state and federal arbitration statutes provide that an arbitration clause is enforceable if contained in a contract or agreement.

A written agreement to submit any existing controversy to arbitration or a provision in a written contract to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable and irrevocable, except upon such grounds as exist at law or in equity for the revocation of any contract.

Virginia law provides that parties to a controversy may agree to submit their differences to arbitration, with the stipulation that the award may be returned to and entered as a judgment of a court of the Commonwealth having jurisdiction over the subject matter of the controversy.

A stay of arbitral proceedings takes place when the arbitral tribunal decides to temporarily suspend an arbitration, usually because there are other proceedings, either at a court or another arbitration, that are relevant to settle the dispute.

Arbitration clauses are often enforced ing to contract law principles. However, some jurisdictions hold them unenforceable if there has been any fraud, overreaching, or the absence of mutuality with terms such as ?any,? ?all,? or ?every? (as opposed to ?some?) in the arbitration clause.

Yes. The Federal Arbitration Act, or FAA, was passed in 1925 in response to a variety of court decisions that held arbitration agreements unenforceable. This law provides that arbitration agreements are generally valid and enforceable.

Relevant here, Section 16(a) of the Federal Arbitration Act permits a defendant to take an interlocutory appeal from the district court's denial of a motion to compel arbitration. The court's 5-4 decision in Coinbase v. Bielski holds that during the pendency of such an appeal, district court proceedings must be stayed.

As Judge Graber points out, "When a party requests a stay pending arbitration of ?any issue referable to arbitration under an agreement in writing,? the court ?shall . . . stay the trial of the action? until the arbitration concludes or unless the requesting party is ?in default in proceeding with such arbitration.?

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Virginia Motion to Stay Action Pending Arbitration