How is an arbitration award enforced?

When two parties in Texas are unable to reach an agreement, they may turn to arbitration for a resolution. In arbitration, an arbitrator or panel of arbitrators decides the outcome of the dispute. An arbitration award is a decision by the arbitrator or panel of arbitrators that gives the parties their agreed-upon rights and financial remedies. Once the arbitration award is issued, the decision is legally binding and can be enforced in the courts. The parties may agree to have the court enter the arbitration award as a judgment, which is a legally enforceable order. If the parties do not enter the award as a judgment, then either party may file a motion to the court to compel the other party to comply with the award. The moving party is then entitled to a writ of execution from the court. A writ of execution is an order from the court that allows the court’s officers to seize and sell the non-complying party’s personal property or assets. The proceeds of the sale are used to pay the amount owed by the non-complying party, which is established by the arbitration award. Other remedies that can be sought include garnishment of wages, liens on real estate, and other court orders to enforce the arbitration award.

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