“Texas Federal Court Compels Arbitration of Civil Rights Claims but Stays Proceedings to Avoid Future Statute of Limitations Issues”

Alex Silverman of Carlton Fields has this article in JD Supra, discussing a Texas federal court’s decision in Pirzada v. AAA Texas, LLC, in which the court, while granting a motion to compel arbitration, stayed rather than dismiss the lawsuit in order “to preserve the plaintiff’s claims in the event they are not resolved by arbitration.” Because “‘ [A] demand for arbitration does not toll the statute of limitations,'” the district court’s opinion noted that “courts have sometimes found that staying an action serves the useful purpose of ‘preserv [ing] a forum for redress in the event that arbitration fails to resolve the claims.'”