Opinion ID: 1686104
Heading Depth: 1
Heading Rank: 8

Heading: Motion to Stay Litigation

Text: The trial court also overruled Lafarge's motion to stay litigation pending arbitration. Lafarge argues that this ruling is appealable under The Missouri Uniform Arbitration Act and under the FAA. It further argues that, because its claims are subject to arbitration, those acts require the court to stay the litigation pending arbitration. As discussed above, Missouri's Uniform Arbitration Act expressly permits an appeal from judgments relating to arbitration. It does not expressly provide for a right of appeal from an order denying a motion to stay litigation pending arbitration. Sec. 435.440. But, Lafarge argues, the FAA applies to transactions involving commerce. Section 2 of the FAA creates federal substantive rights that must be enforced by the state courts. Moses H. Cone Hospital v. Mercury Const. Corp., 460 U.S. 1, 24, 103 S.Ct. 927, 74 L.Ed.2d 765 (1983). The parties concede the transaction in this case falls within the FAA. Therefore, Lafarge argues, the FAA's provisions for appeal of a judgment failing to stay litigation pending arbitration must apply. 9 U.S.C. sec. 16(a). In support, it cites to a number of cases decided by the Missouri Court of Appeals that have found judgments denying stays of arbitration appealable. [4] Dunn and DIG counter by noting that the cited Missouri cases assume rather than decide this issue and do not closely analyze the language of section 3 of the FAA, which they say provides for an appeal only of actions filed in federal court. Section 3 of the FAA provides: If any suit or proceeding be brought in any of the courts of the United States upon any issue referable to arbitration under an agreement in writing for such arbitration, the court in which such suit is pending, upon being satisfied that the issue involved in such suit or proceeding is referable to arbitration under such agreement, shall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement, providing the applicant for the stay is not in default in proceeding with such arbitration. 9 U.S.C. sec. 3 (1999). In support, Dunn and DIG cite Volt Information Sciences, Inc. v. Bd. of Trustees of Leland Stanford Junior Univ., 489 U.S. 468, 477, 109 S.Ct. 1248, 103 L.Ed.2d 488 (1989), in which the United States Supreme Court stated, ... [W]e have never held that Sections 3 and 4, which by their own terms apply only to proceedings in federal court, are nonetheless applicable in state court. The Supreme Court expressly declined to resolve that issue in Volt , finding it unnecessary to do so on the facts of that case. This Court also finds it unnecessary to resolve this issue on the facts of this case. Lafarge's argument is that the trial court was obligated to stay the litigation because it was obligated to grant the motion compel arbitration. Since the trial court overruled the motion to compel arbitration, the motion to stay litigation effectively became moot. This Court has reversed the determination of the trial court not to compel arbitration and has remanded with directions to grant the motion to compel arbitration. Although section 435.440 does not provide for appeal of denial of a motion to stay litigation, by its terms section 435.355.4 states in pertinent part: 4. Any action or proceeding involving an issue subject to arbitration shall be stayed if an order for arbitration or an application therefor has been made under this section or, if the issue is severable, the stay may be with respect thereto only. When the application is made in such action or proceeding, the order for arbitration shall include such stay. Sec. 435.355.4 (emphasis added). On remand, the trial court will comply with all relevant statutory provisions, including section 435.355.4. Unless and until it fails to do so, there is no basis to request relief from the appellate courts. Cf. State ex rel. PaineWebber v. Voorhees, 891 S.W.2d 126, 130 (Mo. banc 1995) (granting writ of prohibition where trial court refused to stay litigation pending arbitration). Therefore, this aspect of the appeal is dismissed as moot.