The Supreme Court has held that when a district court compels claims to arbitration and a party has requested a stay under the Federal Arbitration Act, the district court is required to stay the case and cannot dismiss the suit.
Why This Is Important... the Supreme Court said the specific provisions of the Federal Arbitration Act overrode any discretionary authority the trial court had to dismiss a case. Cases sent to arbitration by federal district courts must be stayed and not dismissed. This gives the parties the opportunity to come back to the court to have the arbitration award enforced in the same court as part of the same case.
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