Legal Question in Business Law in Texas

Arbitration clause in contract

A contract I a party to has an arbitration clause that states: The parties agree that any disputes relating to the performance of contract shall be submitted to arbitration in accordance to rules...The decision renedered in arbitration shall be enforceable as a final judgement.

Does this mean that I can't sue for damages in Civil Court for breach of contract?


Asked on 3/05/04, 2:36 pm

2 Answers from Attorneys
Charles White Charles G. White

Re: Arbitration clause in contract

As a general rule these agreements are enforceable, which means that you cannot sue for damages. There are exceptions and limitations on the enforceability of these agreements such as cases involving personal injury.

Unfortunately for smaller cases, the arbitration expenses sometimes may exceed the expense of trying a small claims court case.

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Answered on 3/05/04, 2:56 pm
Peter Bradie Bradie, Bradie & Bradie

Re: Arbitration clause in contract

If you bring a lawsuit, the other side can invoke the arbitration clause and probably have the suit dismissed, forcing arbitration.

There are some circumstances where an arbiration provision may not be enforced, but they're unusual.

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Answered on 3/05/04, 3:42 pm


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