The following Arbitration guidance note Produced in partnership with Carlos Ramos-Mrosovsky of Alston & Bird provides comprehensive and up to date legal information covering:
This Practice Note considers the availability of anti-suit injunctions in support of arbitration from New York courts. References to US judgments are not reported by LexisNexis® UK.
A party that agrees to arbitrate future disputes may have second thoughts once a dispute actually arises, especially if it anticipates a more favourable outcome through litigation in a different forum. Guarding against this scenario, Section 3 of the Federal Arbitration Act (FAA) requires a court to stay a suit ‘brought in any of the courts of the United States upon any issue referable to arbitration under an agreement in writing for such arbitration...until such arbitration has been had in accordance with the terms of the agreement’, provided the applicant for the stay does not ‘default in proceeding with such arbitration’ or otherwise waive its right to arbitrate (9 U.S.C. § 3; Katz v Cellco P’ship, 794 F.3d 341, 345 (2d Cir. 2015); see also Jiangsu Guotai Int'l Grp Guomao Corp v JAD Int'l Incorporation, 18-CV-2699, 2019 U.S. Dist. LEXIS 43122, *5 (Mar. 15, 2019) (applying Katz and observing that ‘a stay is more appropriate than dismissal to avoid unnecessary delay in the arbitral process due to appellate review’)). At the level of the New York state courts, Article 7503(a) of the New York Civil Practice Law and Rules (NY CPLR) similarly authorises a court
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