Getting into or out of arbitration
When one side files a lawsuit despite an arbitration clause, the other side can usually ask the court to compel arbitration and pause the court case. Courts generally enforce arbitration agreements, but they decide whether an agreement was actually formed, and they look at whether it covers the dispute unless the agreement hands that question to the arbitrator. In New York, a party served with a demand for arbitration may be able to ask a court to stay the arbitration, but that request often must be made within a very short time after the demand. Federal law and New York law both play a role, and which one governs can affect the procedure.
After the award
A party that receives a favorable award usually asks a court to confirm it, which turns the award into a judgment that can be enforced like any other. The other side may ask a court to vacate or modify the award, but the grounds are narrow, and courts do not simply redo the arbitrator's work or correct ordinary mistakes. Petitions to vacate have their own deadlines, which can be short, and missing them can leave a party unable to object when confirmation is sought. Awards from international arbitrations may be enforced under treaties the United States has joined. Keep the full record of the arbitration, including transcripts and exhibits, because a court reviewing the award may look at it.
What we look at first
In a first conversation we read the arbitration clause, the rules of any arbitration provider it names, and the papers already filed or served. We check whether a deadline is running, whether to respond to a demand, to seek a stay, or to challenge an award. We also look at whether the clause includes a class or collective action waiver, a choice of law, or a set location. For businesses, an arbitration lawsuit is also a moment to revisit whether the clause is working as intended. The aim is to get the dispute into the right forum before arguing about who is right.
