§ 172.174.Stay of Court Proceedings

Title 7. Alternate Methods of Dispute Resolution · Chapter 172. Arbitration and Conciliation of International Commercial Disputes · Subchapter G. Judicial Proceedings · Last amended 1997 · Last verified August 29, 2026

In one sentenceSection 172.174 requires a court to stay a judicial proceeding covered by an arbitration agreement and refer the parties to arbitration on a timely request, unless the agreement is void, inoperable or incapable of being performed, and lets the arbitration proceed meanwhile.

Full Text of § 172.174

Text sizeJump to: (a) (b) (c) (d)

(a)On request of a party, a court in which a pending judicial proceeding is being brought by a party to an arbitration agreement to obtain relief with respect to a matter covered by the arbitration agreement shall:

(1)stay the judicial proceeding; and

(2)refer the parties to arbitration.

(b)A party may not make a request for a stay after the time the requesting party submits the party's first statement on the substance of the dispute.

(c)The court may not stay the proceeding if it finds that the agreement is void, inoperable, or incapable of being performed.

(d)An arbitration may begin or continue, and an arbitration tribunal may make an award, while an action described in this section is pending before the court.

End

Plain-English Summary

The international counterpart to a motion to compel, and one of the two sections that reach beyond Texas-seated arbitrations.

The court shall stay and refer. On a party’s request, a court in which a party to an arbitration agreement has brought a proceeding on a covered matter stays the proceeding and refers the parties to arbitration.

Both steps are mandatory once the conditions are met.

The request must come early. A party may not request a stay after submitting its first statement on the substance of the dispute.

That deadline is the waiver rule. A party that argues the merits in court has chosen the forum it is now in.

Three findings defeat the stay. The court may not stay if it finds the agreement void, inoperable, or incapable of being performed.

Those three terms come from the international conventions this chapter is built to work alongside, and they are narrower than a general unenforceability inquiry.

The arbitration does not wait for the court. An arbitration may begin or continue, and the tribunal may make an award, while the court proceeding is pending.

That provision defeats delay through litigation. Filing suit cannot freeze an arbitration the party agreed to.

Section 172.001(b) makes this section reach beyond Texas-seated arbitrations, along with Section 172.175 — a Texas court can be asked to step aside for an arbitration seated anywhere.

Frequently Asked Questions

What happens if a party sues instead of arbitrating?

On request, the court stays the proceeding and refers the parties to arbitration.

When must the request be made?

Before the requesting party submits its first statement on the substance of the dispute.

When will a court refuse?

If it finds the agreement void, inoperable, or incapable of being performed.

Does the arbitration have to wait?

No. It may begin or continue and the tribunal may make an award while the court action is pending.

Amendment History

Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1, 1997.

Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source