ARTICLE
26 April 2018

When Seeking To Compel Arbitration, A Motion To Dismiss Is Sometimes The First Step

M
Mintz

Contributor

Mintz is a general practice, full-service Am Law 100 law firm with more than 600 attorneys. We are headquartered in Boston and have additional US offices in Los Angeles, Miami, New York City, San Diego, San Francisco, and Washington, DC, as well as an office in Toronto, Canada.
A further motion to compel in a court with jurisdiction in the designated place of arbitration may still be necessary.
United States Litigation, Mediation & Arbitration

The Federal Arbitration Act ("FAA"), 9 U.S.C. §§ 1, et seq., provides the usual means of enforcing an arbitration agreement by compelling a party to arbitrate rather than litigate. Thus, the FAA enables an aggrieved party to seek "an order directing that such arbitration proceed in a manner provided for in such agreement." 9 U.S.C. § 4.

However, when (i) a judicial proceeding concerning the claims in question is already pending, and (ii) the applicable arbitration agreement provides that the place of arbitration is outside of the jurisdiction of the federal district court hearing the pending suit, a motion to that court under Fed. R. Civ. P. 12(b)(3) to dismiss the pending suit for improper venue is the correct means of attacking the judicial proceeding, rather than a motion under the FAA (a) to stay it or (b) to compel arbitration. See, e.g., Faulkenberg v. CB Tax Franchise Sys., LP, 637 F.3d 801, 808 (7th Cir. 2011).

A further motion to compel in a court with jurisdiction in the designated place of arbitration may still be necessary. And jurisdiction issues might then abound if it is.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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