When Courts Stay An Arbitration Pending Another Arbitration

Law360, New York (March 4, 2016, 10:50 AM EST) -- The Federal Arbitration Act gives federal courts the power to stay trials pending the result of arbitration. 9 U.S.C.A. § 3. Further, most courts agree that federal courts have the power to do the reverse — to stay arbitrations pending court proceedings. Tai Ping Insurance Co. v. M/V Warschau, 731 F.2d 1141, 1144 (5th Cir. 1984) ("There is no provision in the act for a stay of arbitration. Nonetheless, the case law clearly establishes that, in the appropriate circumstances, such an order is within the power of the district court.").

But what happens if, for example, a subcontractor files an arbitration...

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