Agreement To Arbitrate Claims In Texas
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Validity of Arbitration Agreements Under Section 171.001 of the TAA, written agreements to arbitrate are generally valid and enforceable in Texas. This section ensures that, barring any specific legal exceptions, parties bound by a written agreement to arbitrate must settle their disputes outside of court.
However, the Texas Supreme Court has ruled that an employer can simply notify at-will employees of the details of an arbitration program it is adopting, and the employees can be bound to that arbitration program by continuing their employment, even if they never sign anything.
In some instances, you may be able to sue if you signed a valid arbitration agreement. While courts generally favor arbitration agreements, they will allow you to file a lawsuit if either you didn't understand your rights or your claims fall outside the arbitration provision's scope.
At arbitration, the arbitrator will listen as the parties offer evidence about the issues. Witnesses will answer questions under oath, and each party will explain its side of the case. After the arbitration, the arbitrator will review the evidence and make a decision (enter an award) on each issue.
Because the debtor is a business or individual located in Texas, the next step is to prepare and file an application to confirm the arbitration award in court—with the end-goal of getting a Texas judgment against the debtor. Then, collection of the debt can be pursued via post-judgment procedures.
Texas law will routinely uphold arbitration clauses. However, before submitting to arbitration, all Texans who want their day in court should be sure that the agreement is enforceable. It is tough but you can still avoid an arbitration clause.
Contact the Texas Comptroller's Arbitration team at 800-252-9121 or ptad.arbitration@cpa.texas. You have certain rights under Government Code Chapters 552 and 559 to review, request and correct information we have on file about you. Contact us at the email address or phone number listed in these instructions.
Necessary Elements Details of the Parties. Details of the relationship between the parties. Demand for Arbitration. The mention of agreement/contract (if any). The mention of already existing arbitration agreement between the parties pursuant to which the concerned notice of arbitration has been sent (if any).