What if I have an arbitration agreement and the other side sues me?
Courts enforce agreements to arbitrate by stopping a lawsuit and forcing both sides to arbitrate their dispute. If one side has begun a lawsuit, and if the other side demonstrates that there is an arbitration agreement that covers the subject matter of the lawsuit, the litigation will be "stayed" -- not allowed to proceed -- and the parties will be required to arbitrate. In general, the courts take a very broad view of the subject matter covered by an agreement to arbitrate any future disputes.
One possible exception exists where there is a law that specifically precludes pre-dispute agreements to arbitrate certain types of claims. For example, a May 8, 1998 decision of the United States Court of Appeals for the Ninth Circuit in San Francisco held that the Civil Rights Act precludes an employer from demanding arbitration under a standard form of securities industry employment agreement. The issue involved sexual harassment, and you may want to tune in for a possible "appeal" of that decision to the United States Supreme Court.
State Law Center
|
Legal Resource Directory
|
Legal Articles
|
Insurance Advice and Quotes
|
FreeAdvice Answers
|
Community Forums
