Dismissing Versus Staying Arbitration Proceedings
Bob encountered a doozy arbitration and, not surprisingly, messed it up big time.
March 17, 2022 at 11:40 AM
7 minute read
Charles F. Forer, Charles F. Forer Alternative Resolution Services
ADR
Author's note: This article describes a hypothetical situation.
Bob encountered a doozy arbitration and, not surprisingly, messed it up big time.
The Background—Bob messes Up
Bob defended his client, a franchisee, in an arbitration proceeding where the franchisor sought a declaration that it properly had ended the franchise agreement and owed nothing to Bob's client. Although he customarily is a proponent of arbitration, Bob decided the franchisor did not have the right to proceed in that fashion. So Bob sued the franchisor in federal court to put a kibosh on the arbitration (also known as an injunction prohibiting the franchisor from proceeding with the arbitration) and to assert breach-of-contract and fraud claims.
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