What happens if the parties to a securities arbitration case do not agree to a settlement?

If the parties in a securities arbitration case cannot agree to a settlement, the case may go to binding arbitration. Binding arbitration is a legal process in which the parties to a dispute present their evidence to a neutral arbitrator who makes the decision without the need for a trial. In this type of arbitration, both parties must agree to be bound by the arbitrator’s decision. In Texas, the securities arbitration process begins with the filing of a complaint and answer by the parties and their respective attorneys. These documents explain the nature of the dispute and the damages sought. The parties may then conduct a discovery process, during which they submit requests for documents and other information relevant to the case. This is followed by a discovery conference, at which the parties meet with a mediator to try to reach a settlement. If the parties cannot agree, the case is referred to an arbitration panel made up of three or more arbitrators. The parties present their evidence and arguments to the panel, which then renders a decision. That decision is binding, meaning it cannot be appealed or overturned. This decision is enforceable by the courts of Texas. It is important to note that arbitrations can be much cheaper and faster than trials, saving time and money for both parties. As a result, many people choose to settle their disputes through arbitration rather than litigation.

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What happens if the parties to a securities arbitration case do not agree to a settlement?

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