Chapter 9 - § 9.6 • JURISDICTION AND VENUE OF THE COURTS TO DETERMINE MOTION TO COMPEL OR TO STAY ARBITRATION AND TO STAY LITIGATION, AND CONTINUING JURISDICTION THEREAFTER

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§ 9.6 • JURISDICTION AND VENUE OF THE COURTS TO DETERMINE MOTION TO COMPEL OR TO STAY ARBITRATION AND TO STAY LITIGATION, AND CONTINUING JURISDICTION THEREAFTER

See Chapter 19.

If a civil action has been commenced on the claims for relief, then issues of jurisdiction, venue, and personal service may have been resolved before arbitration issues are raised. Typically, the issue arises when a lawsuit is filed and the defendant asserts the dispute must be arbitrated. Hence, the relief of staying the litigation and compelling arbitration is requested of the court.

However, if the court determines the arbitrability issue is one to be determined by the arbitrator, the court may require that an arbitration procedure be commenced and the arbitrability issue determined therein. It is equally likely, however, that the court will determine those issues before entering an order. There is no meaningful Colorado case law on the subject.28

§ 9.6.1—Jurisdiction And Role Of The Court Upon Entry Of Order Compelling Arbitration

The general rule is that upon determination that a dispute is within a valid and enforceable arbitration clause, the court, with limited exceptions, no longer has jurisdiction over the dispute.29 However, in the District of Colorado, Judge Kane frequently retains jurisdiction to monitor the arbitration, particularly as to discovery. For example, in Image Software, Inc. v. Reynolds & Reynolds Co.,30 he granted the motion to compel arbitration and stay civil action, stating, "I shall retain jurisdiction to monitor the progress of the arbitration. Accordingly, the parties shall submit quarterly joint status reports governing the progress of the ADR efforts. . . ."31

Similarly, when the parties to a civil action settled their differences and entered into a settlement stipulation providing that issues thereafter arising thereunder would be arbitrated, upon approval of the stipulation, the district court retained jurisdiction to enforce its terms. Ultimately, the district court in the same civil action vacated a portion of an arbitration award.32

A Texas court was presented with the question of whether, prior to enforcing an arbitration clause under the FAA, the trial court can enter other orders that do not constitute a trial. "Does the FAA allow the trial court to exercise control of the litigation for everything prior to the trial date?" The court rejected that the trial court could order the parties to mediate, because it would "undermine[] the...

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