Are there any limitations on the remedies that can be awarded in an arbitration?
Yes, there are several limitations on the remedies that can be awarded in an arbitration in Washington. For instance, a party in arbitration cannot collect punitive damages, meaning any damages designated to punish someone for particularly wrongful conduct. Moreover, an arbitrator is not allowed to award any tax-related damages without the consent of the Internal Revenue Service. Additionally, the Washington Supreme Court has ruled that the arbitrator does not have the authority to order specific performance, meaning a decision that requires another party to take a certain action, unless it is provided for in the parties’ contract. Furthermore, an arbitrator is not allowed to award any damages that are meant to cover attorney fees or court costs. The sole remedy an arbitrator may award is a monetary award, meaning a monetary compensation for the damages incurred by the party that initiated the arbitration proceeding. However, if an award granted by the arbitrator is not paid within the specified period of time, the prevailing party in the arbitration proceeding can file a petition in a court of competent jurisdiction to compel the other party to pay the award.
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