ABSTRACT

It is important for the parties to such an arbitration agreement to be aware that the court will, nearly always, and in most cases, regardless of the financial state of the parties, order that if the agreement is held valid then the litigation will be stayed. Although this is a somewhat simplified statement of the circumstances surrounding such an application, it is nevertheless a reasonable indication of the likely outcome. A prominent reason which might result in the court refusing to stay proceedings is the situation where the defendant is facing an allegation of fraud.