4th Circuit Finds Defendant Defaulted On Right To Arbitration
Under section 3 of the FAA, a party loses its right to a stay of court proceedings in order to arbitrate if it is "in default in proceeding with such arbitration." 9 U.S.C. § 3. Default in this context resembles waiver, but because of the strong federal policy favoring arbitration, courts have limited the circumstances that can result in statutory default. Today's case qualified for default and is a reminder that it's best to move early to compel arbitration.