What is estoppel in arbitration?

Estoppel in arbitration is a legal concept in Texas in which an individual or business is prevented from claiming something that contradicts a prior statement or agreement. Estoppel in arbitration occurs when one party gains a benefit or advantage from an action done by the other party that was based on a prior agreement or statement. An example of estoppel in arbitration would be if two businesses agree to arbitrate a contractual dispute and then one of the parties files a claim in a court of law instead. If the other party had relied on the agreement to arbitrate and acted in accordance with the understanding, then the court may prevent that party from bringing a lawsuit by using the estoppel in arbitration doctrine. The doctrine of estoppel in arbitration is commonly used when contractual disputes arise and is a significant aspect of arbitration law in Texas. The purpose of the doctrine is to stop parties from falsely relying on prior agreements or statements of one another that have the potential to lead to an unfair result or substantial loss for one of the parties. Thus, it is an effective way to protect the rights of parties involved in arbitration.

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What is estoppel in arbitration?

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