What is a motion to stay proceedings pending arbitration?
A motion to stay proceedings pending arbitration is a request submitted to a court by one of the parties to a legal dispute asking the court to suspend (“stay”) the proceedings in the case, while the parties resolve their dispute through arbitration. This motion is commonly used by parties who have agreed to an arbitration clause or other alternative dispute resolution (ADR) provision in their contract. In Delaware, motions to stay proceedings pending arbitration are governed by the Delaware Uniform Arbitration Act (DUAA). The DUAA states that a court shall stay proceedings in a case if the court determines that the subject matter of a dispute is widely covered by an arbitration clause or agreement, and the party is willing to abide by the terms of the arbitration clause. This means that the court will not decide the dispute itself, but will allow the parties to resolve their dispute through arbitration. The court is also able to review the arbitration clause and determine if the parties are able to proceed with arbitration. If, for example, the arbitration clause is too broad or does not specifically deal with the issue at hand, the court may reject the motion to stay proceedings pending arbitration. The DUAA also requires that all parties be notified of the motion and given the opportunity to be heard before the court makes a ruling. Ultimately, the court in Delaware will decide whether to grant or deny the motion to stay proceedings pending arbitration taking into account the likelihood of success in arbitration and the interests of justice for the parties.
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