Are there any limitations on the remedies that can be awarded in an arbitration?
In an arbitration, a neutral third party, such as an arbitrator, mediator, or judicial officer, assists two parties in settling a dispute. However, in South Carolina, there are certain limits to the remedies that can be awarded in an arbitration proceeding. Under South Carolina law, an arbitrator cannot award punitive damages in an arbitration. Punitive damages are typically awarded by a court and are not intended to compensate a plaintiff, but to punish a defendant and deter similar bad conduct. South Carolina courts also have determined that an arbitrator cannot order specific performance or injunctive relief. Specific performance is a court remedy that orders a party to fulfill a contract’s terms, and injunctive relief is a court-issued order that prevents a party from taking certain actions. In addition, an arbitrator cannot issue a declaratory judgment in South Carolina. Declaratory judgments are issued by a court to determine a party’s rights and obligations under a contract or law without awarding monetary damages. Having these limitations on remedies that can be awarded in an arbitration does not mean that the arbitration process cannot be used to resolve disputes. It does mean that in an arbitration in South Carolina, all parties should familiarize themselves with the law and the remedies that may be available under the law. This will help ensure that the arbitration process is fair and that all parties receive the remedies to which they are entitled.
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