Enforceability of Arbitration Clauses

An agreement contained to submit to arbitration between parties is valid, enforceable, and irrevocable except when there are grounds under law or in equity for the revocation of a contract. The court must decide whether an agreement to arbitrate exists or a controversy is subject to an agreement to arbitrate. An arbitrator must decide whether a condition precedent to arbitrability has been fulfilled and whether a contract containing a valid agreement to arbitrate is enforceable. If a party to a judicial proceeding challenges the existence of, or claims that a controversy is not subject to, an agreement to arbitrate, the arbitration proceeding may continue pending final resolution of the issue by the court, unless the court otherwise orders. MCLA § 691.1686.

"Michigan's public policy favors arbitration as a method of dispute resolution. Omega Construction Co., Inc. v Actman, 147 Mich. App. 649, 655, 382 NW2d 839 (1985).

City of Huntington Woods v Ajax Paving Industries, Inc., 196 Mich. App. 71, 75, 492 NW2d 463 (1992) (purpose of arbitration agreement is to avoid protracted litigation). Accordingly, if any court action or proceeding is filed which involves disputes or claims subject to a valid arbitration agreement, then the trial court should stay the action until arbitration has been completed in accordance with the terms of the agreement."