Business Arbitration Lawyers in Dallas

In a Texas business dispute, arbitration is a method of resolving conflicts outside of court, where parties agree to submit their case to a neutral third party (the arbitrator) for a final and binding decision, whose award can be confirmed in court under the Texas Arbitration Act (Tex. Civ. Prac. & Rem. Code § 171.001) and the Federal Arbitration Act. It's often used to avoid the time and expense of a traditional lawsuit. 

In Texas, a written arbitration agreement is “valid, irrevocable, and enforceable” unless a statutory ground such as fraud, duress, or unconscionability exists. The Federal Arbitration Act (FAA) also generally favors arbitration and ensures its enforcement. However, certain conditions must be met for the clause to be considered valid and enforceable.

Arbitration proceedings are private. Hearings are closed to the public, discovery documents stay private, and awards are not filed in the public record unless a party seeks court enforcement or vacatur. However, they are not automatically confidential. Parties can generally publicize the proceedings and information unless there's a specific agreement or institutional rule requiring confidentiality.

Arbitration is mandatory when a contract or law explicitly requires it for resolving disputes, or when parties agree to it in a binding agreement, such as a clause in a contract. Mandatory arbitration often occurs in cases where the monetary amount in dispute is below a certain threshold, such as $50,000. 

Federal courts may compel arbitration under the Federal Arbitration Act (FAA) in certain situations, however, such as if a jury trial in civil cases is required, if the dispute involves interstate commerce, or if state law compromises enforceability of the agreement.

Arbitration is generally faster than court litigation. Cases can often be resolved within a few months through arbitration, whereas litigation can take years. For instance, in the U.S., district court cases take an average of 24.2 months to get to trial, while arbitration cases take only 11.6 months.

On average, Texas arbitration takes 4–8 months from initiation to resolution.

Business arbitration costs can vary significantly, encompassing arbitrator fees, administrative expenses, and legal costs. Generally, the parties involved in the arbitration are responsible for their own legal fees and expenses, and typically share the arbitrator's fees and administrative costs. However, the specific agreement between the parties (often outlined in the arbitration clause of their contract) will determine how these costs are allocated.

Contract breaches, partnership dissolutions, supplier disagreements, post-acquisition earn-out fights, and trade-secret claims often proceed more efficiently in arbitration because of flexible scheduling and confidentiality.

In most cases, arbitration awards cannot be directly appealed. However, they can be challenged and potentially vacated by a court under very limited circumstances. The ability to appeal or challenge an award depends on the terms of the arbitration agreement and the applicable law, which often heavily favors the finality of the arbitration process.

In texas, grounds to vacate an award are narrow and require evidence of corruption, partiality, arbitrator misconduct, or exceeding contractual powers. These must be raised within 90 days in state court under Tex. Civ. Prac. & Rem. Code § 171.088. There is no full merits appeal, so selecting an experienced arbitrator is critical.

Parties may name an arbitrator in their contract, agree on one after a dispute arises, or use institutional lists from AAA, JAMS, or ICC. If they cannot agree, the forum will appoint an arbitrator with business-law expertise.

In arbitration, discovery is generally more limited and flexible than in traditional litigation. Parties can exchange documents, and the arbitrator can order discovery deemed necessary to a full and fair resolution. While depositions are sometimes allowed, particularly in larger cases or as stipulated by the parties, they are not always available.

The American Arbitration Association (AAA) serves as a neutral third-party organization that facilitates alternative dispute resolution (ADR) services, particularly arbitration and mediation. Its primary role is to provide a fair and impartial process for resolving disputes outside of traditional litigation, saving time and expense.

Specify that disputes “arising out of or relating to” the agreement will be resolved by binding arbitration in Dallas, Texas under the AAA Commercial Rules, limit discovery to essentials, include cost-shifting language, and state that judgment on the award may be entered in any court.