Contracts & ExecutionQuestion 833 of 1605
A construction contract contains a valid clause requiring the parties to arbitrate all disputes. If one party nonetheless files a lawsuit in court, the other party can typically:
a.Convert the case to a public works claim
b.Demand a criminal prosecution
c.Move to compel arbitration and stay the court case based on the agreement
d.Do nothing because the arbitration clause is automatically void
Explanation
When parties agree to a valid, enforceable arbitration clause, a party who is sued in court may move to compel arbitration and to stay (pause) the lawsuit, enforcing the agreed forum. Courts generally favor honoring arbitration agreements. The clause is not automatically void, the dispute is a civil contract matter rather than a criminal one, and an arbitration clause does not transform the case into a public works claim.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)