Attorney Jason McGrath shares some items to consider when your contract has an arbitration provision but the other party has already filed a formal lawsuit in the court system in this short video.
Here are some of the key points contained in the video:
What do you do if the other party has already filed a formal lawsuit in the court system?
- You go to the other side and point out that there is an arbitration clause in the contract and demand it be honored.
- If the other side refuses to halt the lawsuit and go to arbitration, you file a motion asking the court to dismiss or stay the lawsuit and order arbitration.
- This type of a motion needs to be filed before the case goes to far in the formal court system.
- If the court believes the arbitration clause to be valid, it will typically order arbitration and halt the lawsuit in the meantime.
- More often than not, arbitration clauses are enforced by courts.
You should get advice from an attorney to assist in handling litigation issues like arbitration.
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