McConnell & Malek Enterprises v. Proof Mark, Inc

Background

McConnell & Malek Enterprises, doing business as SFDF Consultants, sued ProofMark, Inc., doing business as Proof Analytics. The opinion text does not describe the underlying claims or the merits of the dispute. The parties jointly asked the court to replace court-ordered mediation with binding arbitration under the American Arbitration Association.

The Parties’ Agreement

The parties agreed to arbitrate the entire matter under American Arbitration Association Case 01-23-0000-0989. They asked the court to vacate its April 5, 2023, and June 2, 2023, orders requiring mediation. They also agreed that ProofMark’s pending motion to compel arbitration, which had been scheduled for a hearing on August 15, 2023, was moot and withdrawn by ProofMark.

The parties requested a stay, meaning a pause, in the court proceedings until arbitration concluded. During the stay, they agreed not to seek discovery except as allowed or agreed to in arbitration, not to seek other relief from the court except relief needed to enforce an arbitration award, and not to individually move to dismiss the case. The stipulation allowed either party to ask the court to address noncompliance with the agreement or to lift the stay if necessary.

Ruling

Judge Lisa J. Cisneros ordered the parties to proceed immediately to binding arbitration and stayed further proceedings on the merits pending the final resolution of arbitration. The order also required a mutual status report within six months and another report within 20 days after arbitration concluded, unless the earlier report or a court order controlled. The order did not resolve the underlying dispute or decide any claim on the merits.