Sigma 3 Integrated Reservoir Solutions Inc. et al v. Ouenes et al

Filing 13

ORDER entered: This case is dismissed, without prejudice, in favor of arbitration. Case terminated on 1/17/17.(Signed by Chief Judge Lee H Rosenthal) Parties notified.(leddins, 4)

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United States District Court Southern District of Texas ENTERED IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION SIGMA 3 INTEGRATED RESERVOIR, SOLUTIONS INC. AND SIGMA CUBED INC., Plaintiffs, v. AHMED OUENES, PETER O’CONOR AND FRACGEO L.L.C., Defendants. § § § § § § § § § § § § January 17, 2017 David J. Bradley, Clerk CIVIL ACTION NO. H-16-3332 ORDER The parties have agreed to arbitrate their disputes, including their dispute over the issuance of a preliminary injunction. The plaintiffs’ motion for a preliminary injunction, Docket Entry No. 1, and the defendants’ motion to dismiss, Docket Entry No. 6, are denied as moot. Under section 3 of the Federal Arbitration Act, 9 U.S.C. § 3, “a stay is mandatory upon a showing that the opposing party has commenced suit upon any issue referable to arbitration under an agreement in writing for such arbitration . . . .” Alford v. Dean Witter Reynolds, Inc., 975 F.2d 1161, 1164 (5th Cir. 1992). The Fifth Circuit has interpreted this language to mean that the district court cannot deny a stay when one is properly requested. Id. “This rule, however, was not intended to limit dismissal of a case in the proper circumstances.” Id. “[A] dismissal may be appropriate ‘when all of the issues raised in the district court must be submitted to arbitration.’” Ruiz v. Donahoe, 784 F.3d 247, 249–50 (5th Cir. 2015) (quoting Alford, 975 F.2d at 1164). As the Fifth Circuit explained in Alford: Although we understand that plaintiff’s motion to compel arbitration must be 1 granted, we do not believe that the proper course is to stay the action pending arbitration. Given our ruling that all issues raised in this action are arbitrable and must be submitted to arbitration, retaining jurisdiction and staying the action will serve no purpose. Any post-arbitration remedies sought by the parties will not entail renewed consideration and adjudication of the merits of the controversy but would be circumscribed to a judicial review of the arbitrator’s award in the limited manner prescribed by law. Id. (quoting Sea-Land Service, Inc. v. Sea-Land of Puerto Rico, Inc., 636 F. Supp. 750, 757 (D. Puerto Rico 1986)). This case is dismissed, without prejudice, in favor of arbitration. SIGNED on January 17, 2017, at Houston, Texas. ______________________________________ Lee H. Rosenthal Chief United States District Judge 2

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