In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision. Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. You should write an incorrect option. Even though there exist multiple wrong answers, we only need a single wrong answer. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.
Q: the action should pro ceed among the existing parties or be dismissed. Fed.R.Civ.P. 19(b). Defendant neglected to offer any explanation for how and why Mr. Stroud is essential, other than that he was named in the underlying state court case. That is not enough. Mr. Stroud is not a necessary or indispensable party under Rule 19 because this Court can administer complete relief an order compelling arbitration among the existing parties and Mr. Stroud himself is not claiming an interest in this arbitration action that will be impaired by his absence. Although failing to dismiss this case may result in piecemeal litigation, that factor alone is not compelling enough to find Mr. Stroud to be an indispensable party. Cf. Doctor's Assocs., Inc. v. Distajo, 66 F.3d 438, 446 (2d Cir.1995) (<HOLDING>). This Court therefore properly limits its
Holding statements: (A) holding that the federal arbitration act requires piecemeal resolution when necessary to give effect to an arbitration agreement and mandates enforcement of an arbitration agreement notwithstanding the presence of other persons who are parties to the underlying dispute but not to the arbitration agreement emphasis added (B) holding that in ruling on a motion to compel arbitration a court must consider 1 whether the parties have entered into a valid arbitration agreement 2 whether an arbitrable issue exists and 3 whether the right to arbitration has been waived (C) holding that district courts are required to compel arbitration of claims subject to arbitration clause even if the result is piecemeal litigation (D) holding that faa was inapplicable where parties involved in action are not parties to an arbitration agreement under which issues are referable to arbitration (E) holding that in determining whether diversity jurisdiction exists in petition to compel arbitration district court was correct in looking only to citizenship of parties in action before it parties who signed arbitration agreement and that nondiverse agents in underlying state case were not indispensable parties as any potential prejudice resulting from piecemeal litigation is overcome by faas strong bias in favor of arbitration
A:
holding that the federal arbitration act requires piecemeal resolution when necessary to give effect to an arbitration agreement and mandates enforcement of an arbitration agreement notwithstanding the presence of other persons who are parties to the underlying dispute but not to the arbitration agreement emphasis added