BRITTANIA-U NIGERIA LIMITED v. CHEVRON U.S.A, INC., H-16-1457 (2016)
Court: District Court, S.D. Texas
Number: infdco20160915i85
Visitors: 13
Filed: Sep. 14, 2016
Latest Update: Sep. 14, 2016
Summary: ORDER LEE H. ROSENTHAL , District Judge . Britannia-U has moved for an amendment to the dismissal-without-prejudice order to one staying the case pending the arbitration. (Document Entry No. 38). In Alford v. Dean Witter Reynolds, Inc. , 975 F.2d 1161 (5th Cir. 1992), the Fifth Circuit acknowledged that the Federal Arbitration Act states that the "court shall stay the trial of the action until the arbitration is complete," but held that this rule was not intended to limit dismissal of a
Summary: ORDER LEE H. ROSENTHAL , District Judge . Britannia-U has moved for an amendment to the dismissal-without-prejudice order to one staying the case pending the arbitration. (Document Entry No. 38). In Alford v. Dean Witter Reynolds, Inc. , 975 F.2d 1161 (5th Cir. 1992), the Fifth Circuit acknowledged that the Federal Arbitration Act states that the "court shall stay the trial of the action until the arbitration is complete," but held that this rule was not intended to limit dismissal of a ..
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ORDER
LEE H. ROSENTHAL, District Judge.
Britannia-U has moved for an amendment to the dismissal-without-prejudice order to one staying the case pending the arbitration. (Document Entry No. 38). In Alford v. Dean Witter Reynolds, Inc., 975 F.2d 1161 (5th Cir. 1992), the Fifth Circuit acknowledged that the Federal Arbitration Act states that the "court shall stay the trial of the action until the arbitration is complete," but held that this rule was not intended to limit dismissal of a case in the proper circumstance. Id. at 1164. The Fifth Circuit held that "[t]he weight of authority clearly supports dismissal of the case when all of the issues raised in the district court must be submitted to arbitration." Id. (emphasis in original). That is true here as well. In this case, as in Alford, "retaining jurisdiction and staying the action will serve no purpose." Id. (quoting Sea-Land Serv. v. Sea-Land of Puerto Rico, 636 F.Supp. 750, 757 (D.P.R. 1986)).
A stay is not required. See Apache Bohai Corp. v. Texacho China, 330 F.3d 307, 311 & n.9 (5th Cir. 2003). It is well within this court's discretion to dismiss rather than stay the action. This circuit counsels district courts to follow this practice. See Fedmet Corp v. M/V Buyalyk, 194 F.3d 674, 676 (5th Cir. 1999). The court denies Britannia-U Nigeria Limited's motion to amend the order of dismissal. (Docket Entry No. 38).
Source: Leagle
