§ 50-43. Proceedings to compel or stay arbitration.
§ 50‑43. Proceedings tocompel or stay arbitration.
(a) On a party'sapplication showing an agreement under G.S. 50‑42 and an opposing party'srefusal to arbitrate, the court shall order the parties to proceed with thearbitration. If an opposing party denies existence of an agreement toarbitrate, the court shall proceed summarily to determine whether a validagreement exists and shall order arbitration if it finds for the moving party;otherwise, the application shall be denied.
(b) Upon theapplication of a party, the court may stay an arbitration proceeding commencedor threatened on a showing that there is no agreement to arbitrate. This issue,when in substantial and bona fide dispute, shall be immediately and summarilytried and the court shall order a stay if it finds for the moving party. If thecourt finds for the opposing party, the court shall order the parties to go toarbitration. An arbitrator shall decide whether a condition precedent toarbitrability has been fulfilled and whether a contract containing a validagreement to arbitrate is enforceable. If a party to a judicial proceedingchallenges the existence of, or claims that a controversy is not subject to, anagreement to arbitrate, the arbitration proceeding may continue pending final resolutionof the issue by the court unless the court otherwise orders.
(c) If an issuereferable to arbitration under an alleged agreement is involved in an action orproceeding pending in a court of competent jurisdiction, the application shallbe made in that court. Otherwise, the application may be made in any court ofcompetent jurisdiction.
(d) The court shallorder a stay in any action or proceeding involving an issue subject toarbitration if an order or an application for arbitration has been made underthis section. If the issue is severable, the stay may be with respect to thatspecific issue only. When the application is made in an action or proceeding,the order compelling arbitration shall include a stay of the court action orproceeding.
(e) An order forarbitration shall not be refused and a stay of arbitration shall not be grantedon the ground that the claim in issue lacks merit or because grounds for theclaim have not been shown. (1999‑185, s. 1; 2005‑187, s. 2.)