What is a stay of arbitration?

A stay of arbitration is a court-ordered suspension of the arbitration proceedings. In Texas, an arbitration proceeding is defined as a method of dispute resolution whereby the parties to a dispute agree to have their disputes settled by a third party, called an arbitrator. A stay of arbitration prevents the parties from continuing any proceedings until the court reviews the motion and makes a ruling. When a party to an arbitration proceeding wishes to have the arbitration stopped, they can file a motion for a stay of arbitration. The motion will ask the court to stay, or suspend, the arbitration until the court has reviewed the case. The court then will review the motion and decide whether a stay of arbitration is appropriate. In Texas, a motion for a stay of arbitration must be supported by a showing of good cause. Good cause is a legal term that means there is a valid or compelling reason for a stay of arbitration. The court will consider the facts of the case and any evidence presented to it when deciding whether to grant the stay. If the court finds that good cause has been presented, it will grant the motion to stay the arbitration proceedings until further review. The stay will prevent either party from continuing with the arbitration until the court makes a final ruling. It is important to note, however, that a stay of arbitration does not necessarily mean the arbitration will be terminated permanently.

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What is a stay of arbitration?

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