If Claims Are Subject to Arbitration, the Remedy is a Stay, Not Dismissal

On April 9, 2026, Justice Borrok of the New York County Commercial Division issued a decision in Otterbourg P.C. v. Cretella, 2026 NY Slip Op. 31506(U), holding that if claims are subject to arbitration, the proper procedural remedy is a stay pending arbitration, not dismissal, explaining:

With respect to the appropriate procedural disposition, the Court declines to dismiss the action. Pursuant to New York law, an agreement to arbitrate is not a defense to an action and generally does not warrant dismissal; rather, the proper course is to stay the action pending arbitration. A stay is particularly appropriate here to preserve the action pending the outcome of arbitration.

(Internal citations omitted).

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