What happens if a party fails to comply with a securities arbitration award?

Failing to comply with a securities arbitration award in California can have serious legal implications. When an award is issued by an arbitration panel, it is legally binding and enforceable. This means that the parties must adhere to the terms of the award. If one of the parties fails to comply with the award, the other party is legally entitled to seek enforcement. This can be done through filing a petition with the court that issued the arbitration order. The court can then issue an enforcement order, and can impose legal sanctions, such as a judgment, on the non-compliant party. The court may also order the non-compliant party to pay all or a portion of the other party’s legal costs and attorney’s fees. In addition, the court can order the non-compliant party to pay damages. This might include the amount specified in the arbitration award plus any additional costs associated with the non-compliance. Therefore, it is important that parties comply with the terms of a securities arbitration award if they do not wish to risk significant legal and financial penalties. If a party cannot comply with the award, they may seek to negotiate an alternative resolution with the other party in order to avoid court enforcement.

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