What are the remedies for breach of an arbitration agreement?

Under Texas arbitration law, remedies for breach of an arbitration agreement depend on the terms of the agreement. Generally, when one party breaches an arbitration agreement, the other party may seek specific performance from a court to force the breaching party to comply with the contract. Additionally, in some cases the non-breaching party may be entitled to money damages or equitable remedies such as an injunction. The non-breaching party may also seek attorney’s fees associated with trying to enforce the arbitration agreement. This is one of the benefits of using arbitration agreements, as it allows parties to agree in advance to split the costs of a dispute resolution. This, in turn, reduces the cost of resolving disputes. In some cases, punitive damages may also be available to the non-breaching party if the breach was in bad faith or involved a malicious or willful misconduct. Furthermore, if the arbitration agreement provides for it, the non-breaching party may seek reimbursement for other legal costs such as expert witnesses and filing fees. Finally, in some situations, the non-breaching party may be able to seek specific performance from the court, meaning that the court would order the breaching party to comply with the agreement. This remedy is most commonly used if the arbitration agreement calls for a certain level of performance and it cannot be fairly compensated through money damages.

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