BRADFORD, J.
In GoMembers, this court considered, as a matter of first impression, whether the proper remedy would be to stay or dismiss the court proceedings pending the outcome of arbitration when a party files a lawsuit despite a contractual agreement to engage in binding arbitration. 777 N.E.2d at 750. In considering whether a stay or dismissal would be proper, the GoMembers court noted that “on past occasions, Indiana courts have both stayed and dismissed litigation under such circumstances without explaining why that course was appropriate.” Id. at 752. Ultimately, the GoMembers court concluded as follows:
[A] superior resolution is to allow trial courts to exercise their discretion to either stay or dismiss litigation based on the nature of the contested issues that should first be submitted to arbitration. By utilizing this discretion, courts may examine the facts and circumstances of each case to determine the most prudent course of action. Factors which the trial court may wish to consider include whether court intervention will be necessary to compel discovery, whether the arbitration award will be enforced through the court, whether the entire controversy is arbitrable, which state’s substantive law will be applicable to the controversy, and the location of the parties and the evidence.
Id. A stay, rather than a dismissal, is perhaps favorable where certain claims remain that are not subject to arbitration, but dismissal is proper where all issues raised must be submitted to arbitration. See generally, DeGroff v. Mascotech Forming Techologies-Fort Wayne, Inc., 179 F. Supp. 2d 896, 914 n.20 (N.D.Ind. 2001) (providing that dismissal of the case is proper where all the issues raised must be submitted to arbitration).
Here, the record demonstrates that although the entire controversy between Koors and the Steffens arose out of and related to the Contract, further action by the trial court could potentially be required if the arbitration panel were to find for Koors and determine that foreclosure is a proper remedy. We note that had we concluded that the parties’ Contract was a no lien contract, then we would agree that dismissal of the instant action would have been proper. However, having concluded that the parties’ Contract did provide for the possibility that a lien could arise out of the parties’ Contract, and in light of Indiana Code section 32-28-3-6 (2009) which requires that a complaint for foreclosure “must be filed not later than one year after the date the statement and notice of intention to hold a lien was recorded,” we conclude that the proper action would have been to stay the matter pending arbitration. [Footnote omitted.] Therefore, under these circumstances, we conclude that the trial court abused its discretion in dismissing rather than staying the matter pending arbitration.
BAILEY, J., and VAIDIK, J., concur.