What are the remedies for breach of an arbitration agreement?
Remedies for breach of an arbitration agreement in Delaware are established by the state’s Uniform Arbitration Act. Generally speaking, when a party breaches an arbitration agreement, the other party may file an application for an injunction with the court to enforce the arbitration clause. This injunction may be used to prevent the breaching party from engaging in activities which violate the agreement, such as filing a lawsuit in a court of law instead of arbitration. Another remedy available under Delaware’s Uniform Arbitration Act is a motion to compel arbitration. This motion may be filed to enforce a pre-existing arbitration clause or to transfer a case from a court to an arbitration tribunal. If the motion is granted, the court will compel the breaching party to proceed with arbitration. Furthermore, a party that fails to comply with an arbitration award may be liable for damages and attorney’s fees. If this is the case, the other party may file a motion to confirm or vacate the award, which allows the court to enforce the award or modify it as necessary. Therefore, Delaware’s Uniform Arbitration Act provides a variety of remedies for breach of an arbitration agreement, including injunctions, motions to compel arbitration, and enforcement of arbitration awards. By providing these remedies, Delaware encourages parties to settle their disputes through an arbitration process, as a more efficient and cost-effective alternative to court litigation.
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