Yes. Your assumption/impression is not correct. Filing a petition (or motion) to compel arbitration normally stays the litigation pursuant to CA Code of Civil Procedure section 1281.5. Moreover, pursuant to CA Code of Civil Procedure section 1281.7, the petitioning defendant has 15 days after any denial of the petition to plead to the complaint.
No one can really advise you how to oppose a specific demurrer. However, you might consider filing a First Amended Complaint to correct any deficiencies in the allegations of your Complaint.
Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice for a particular case. This Avvo.com posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult with your own attorney.
Filing the petition for arbitration is a legitimate response to a lawsuit and usually stays the lawsuit pending a determination. After the petition was denied a demurrer would still be available.
As for opposing the demurrer, you can either argue using law and facts why the demurrer should be overruled, or file an amended complaint to fix the defects, assuming you have not filed an amended complaint already.
If you have a valuable case, you should try consulting with an attorney.