CHAPTER 172. ARBITRATION AND CONCILIATION OF INTERNATIONAL COMMERCIAL DISPUTES
CIVIL PRACTICE AND REMEDIES CODE
TITLE 7. ALTERNATE METHODS OF DISPUTE RESOLUTION
CHAPTER 172. ARBITRATION AND CONCILIATION OF INTERNATIONAL
COMMERCIAL DISPUTES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 172.001. SCOPE OF CHAPTER. (a) This chapter applies to
international commercial arbitration and conciliation, subject to
any agreement that is in force between the United States and
another state or states.
(b) This chapter, except Sections 172.174 and 172.175, applies
only to arbitration or conciliation in this state.
(c) Except as provided by Subsection (d), this chapter does not
affect another state law under which a dispute:
(1) may not be submitted to arbitration; or
(2) may be submitted to arbitration only in accordance with law
other than this chapter.
(d) Except as provided by this subsection, this chapter
supersedes Subchapters B and C, Chapter 171, with respect to
international commercial arbitration and conciliation. This
chapter does not supersede Subchapter A or D of that chapter or
Section 171.022.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-1 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.002. DEFINITIONS. (a) In this chapter:
(1) "Arbitration" includes any arbitration without regard to
whether it is administered by a permanent arbitration
institution.
(2) "Arbitration agreement" means an agreement to arbitrate a
dispute that has arisen or may arise between the parties
concerning a defined legal relationship, without regard to
whether the legal relationship is contractual. The term includes
an arbitration clause in a contract or a separate agreement.
(3) "Arbitration award" means a decision of an arbitration
tribunal on the substance of a dispute submitted to it and
includes an interim, interlocutory, or partial award.
(4) "Arbitration tribunal" means a sole arbitrator or a panel of
arbitrators.
(5) "Claim" includes a counterclaim.
(6) "Conciliation" includes any conciliation without regard to
whether it is administered by a permanent conciliation
institution.
(7) "Defense" includes a defense to a counterclaim.
(8) "Party" means a party to an arbitration or conciliation
agreement.
(b) The meanings assigned by this section to "claim" and
"defense" do not apply in Sections 172.114(a) and 172.118(b)(1).
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-2 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.003. INTERNATIONAL AGREEMENT. (a) An arbitration or
conciliation agreement is international if:
(1) the places of business of the parties to the agreement are
located in different states when the agreement is concluded;
(2) any of the following places is located outside any state in
which a party has a place of business:
(A) the place of arbitration or conciliation determined under
the arbitration or conciliation agreement;
(B) a place where a substantial part of the obligations of the
commercial relationship is to be performed; or
(C) the place with which the subject matter of the dispute is
most closely connected;
(3) each party has expressly agreed that the subject matter of
the arbitration or conciliation agreement relates to commercial
interests in more than one state; or
(4) the arbitration or conciliation agreement arises out of a
legal relationship that has another reasonable relation with more
than one state.
(b) Subsection (a)(4) applies without regard to whether the
legal relationship is contractual.
(c) For purposes of this section, the place of business of a
party who has more than one place of business is the place that
has the closest relationship to the arbitration or conciliation
agreement. If a party does not have a place of business, the
party's place of business is the party's habitual residence.
(d) For purposes of this section, the states of the United
States and the District of Columbia are one state.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-3 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.004. COMMERCIAL AGREEMENT. An arbitration or
conciliation agreement is commercial if it arises out of a
relationship of a commercial nature, including:
(1) a transaction for the supply or exchange of goods or
services;
(2) a distribution agreement;
(3) a commercial representation or agency;
(4) an exploitation agreement or concession;
(5) a joint venture or other related form of industrial or
business cooperation;
(6) the carriage of goods or passengers by air, sea, rail, or
road;
(7) a relationship involving:
(A) construction;
(B) insurance;
(C) licensing;
(D) factoring;
(E) leasing;
(F) consulting;
(G) engineering;
(H) financing;
(I) banking;
(J) professional services; or
(K) intellectual or industrial property, including trademarks,
patents, copyrights, and software programs; or
(8) the transfer of data or technology.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-4 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.005. DATE WRITTEN COMMUNICATIONS RECEIVED. (a) Except
as agreed by the parties, a written communication is received on
the day that it is delivered:
(1) to the addressee personally; or
(2) at the addressee's place of business, habitual residence, or
mailing address.
(b) If a place described by Subsection (a) cannot be found after
a reasonable inquiry, a written communication is received if it
is sent to the addressee's last known place of business, habitual
residence, or mailing address by registered mail or other means
that provides a record of the attempt to deliver it.
(c) This section does not apply to a written communication
relating to a court proceeding.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-5 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.006. WAIVER OF RIGHT TO OBJECT. (a) A party who
proceeds with the arbitration knowing that a provision of this
chapter or the arbitration agreement has not been complied with
waives the right to object to the noncompliance unless the party
states the objection:
(1) without undue delay; or
(2) if a period is provided for stating that objection, within
that period.
(b) Subsection (a) applies only to a provision of this chapter
as to which the parties may agree to act in a different manner.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-6 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.007. DELEGATION OF CERTAIN DETERMINATIONS. The parties
may authorize a third party, including an institution, to
determine any issue the parties may determine under this chapter,
other than a determination under Section 172.102.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
SUBCHAPTER B. ARBITRATION AGREEMENTS
Sec. 172.031. ARBITRATION AGREEMENTS VALID. (a) A written
arbitration agreement is valid and enforceable if the agreement
is to arbitrate a controversy that:
(1) exists at the time of the agreement; or
(2) arises between the parties after the date of the agreement.
(b) A party may revoke the agreement only on a ground that
exists at law or in equity for the revocation of a contract.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.032. REQUIREMENTS FOR ARBITRATION AGREEMENT. (a) An
arbitration agreement must be in writing. The agreement is in
writing if it is contained in:
(1) a document signed by each party;
(2) an exchange of letters, telexes, telegrams, or other means
of telecommunication that provide a record of the agreement; or
(3) an exchange of statements of claim and defense in which the
existence of an agreement is alleged by one party and not denied
by another.
(b) A contract reference to a document containing an arbitration
clause is an arbitration agreement if the contract is in writing
and the reference is sufficient to make that clause part of the
contract.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.033. RULES REFERRED TO IN AGREEMENT. An agreement of
the parties under this chapter includes any arbitration or
conciliation rules referred to by that agreement.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
SUBCHAPTER C. ARBITRATORS
Sec. 172.051. NUMBER OF ARBITRATORS. An arbitration has one
arbitrator unless the parties agree to additional arbitrators.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-7 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.052. NATIONALITY OF ARBITRATOR. A person of any
nationality may be an arbitrator.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-8 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.053. APPOINTMENT OF ARBITRATION TRIBUNAL. (a) Subject
to Sections 172.054(b), (c), and (d) and Section 172.055, the
parties may agree on a procedure for appointing the arbitration
tribunal.
(b) If an agreement is not made under Subsection (a), in an
arbitration with three arbitrators and two parties, each party
shall appoint one arbitrator, and the two appointed arbitrators
shall appoint the third arbitrator.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-9 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.054. APPOINTMENT BY COURT. (a) On request of a party,
the district court of the county in which the place of
arbitration is located shall appoint each arbitrator if:
(1) an agreement is not made under Section 172.053(a) in an
arbitration with a sole arbitrator and the parties fail to agree
on the arbitrator; or
(2) the appointment procedure in Section 172.053(b) applies and:
(A) a party fails to appoint an arbitrator not later than the
30th day after the date of receipt of a request to do so from the
other party; or
(B) the two appointed arbitrators fail to agree on the third
arbitrator not later than the 30th day after the date of their
appointment.
(b) On request of a party, the district court of the county in
which the place of arbitration is located may take necessary
measures if under an appointment procedure agreed to by each
party:
(1) a party fails to act as required under that procedure;
(2) the parties or two appointed arbitrators fail to reach an
agreement expected of them under that procedure; or
(3) a third party, including an institution, fails to perform a
function assigned to the party under that procedure.
(c) Subsection (b) does not apply if the agreement on the
appointment procedure provides other means for securing the
appointment.
(d) A decision of the district court under this section is final
and not subject to appeal.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.055. FACTORS CONSIDERED. In appointing an arbitrator,
the district court shall consider:
(1) each qualification required of the arbitrator by the
arbitration agreement;
(2) any consideration making more likely the appointment of an
independent and impartial arbitrator; and
(3) in the case of a sole or third arbitrator, the advisability
of appointing an arbitrator of a nationality other than that of
any party.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.056. DISCLOSURE OF GROUNDS FOR CHALLENGE. (a) Except
as otherwise provided by this chapter, a person who is contacted
in connection with the person's possible appointment or
designation as an arbitrator or conciliator or who is appointed
or designated shall, not later than the 21st day after the date
of the contact, appointment, or designation, disclose to each
party any information that might cause the person's impartiality
or independence to be questioned, including information that:
(1) the person:
(A) has a personal bias or prejudice concerning a party;
(B) has personal knowledge of a disputed evidentiary fact
concerning the proceeding;
(C) served as an attorney in the matter in controversy;
(D) is or has been associated with another who has participated
in the matter during the association;
(E) has been a material witness concerning the matter;
(F) served as an arbitrator or conciliator in another proceeding
involving a party to the proceeding; or
(G) has a close personal or professional relationship with a
person who:
(i) is or has been a party to the proceeding or an officer,
director, or trustee of a party;
(ii) is acting or has acted as an attorney or representative in
the proceeding;
(iii) is or expects to be nominated as an arbitrator or
conciliator in the proceeding;
(iv) is known to have an interest that could be substantially
affected by the outcome of the proceeding; or
(v) is likely to be a material witness in the proceeding;
(2) the person, individually or as a fiduciary, or the person's
spouse or minor child residing in the person's household has:
(A) a financial interest in:
(i) the subject matter in controversy; or
(ii) a party to the proceeding; or
(B) any other interest that could be substantially affected by
the outcome of the proceeding; or
(3) the person, the person's spouse, a person within the third
degree of relationship to either of them, or the spouse of that
person:
(A) is or has been a party to the proceeding or an officer,
director, or trustee of a party;
(B) is acting or has acted as an attorney in the proceeding;
(C) is known to have an interest that could be substantially
affected by the outcome of the proceeding; or
(D) is likely to be a material witness in the proceeding.
(b) Except as provided by this subsection, the parties may agree
to waive the disclosure under Subsection (a). A party may not
waive the disclosure for a person serving as:
(1) the sole arbitrator or conciliator; or
(2) the chief or prevailing arbitrator or conciliator.
(c) After appointment and throughout the arbitration or
conciliation, an arbitrator or conciliator shall promptly
disclose to each party any circumstance described by Subsection
(a) that was not previously disclosed.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.057. GROUNDS FOR CHALLENGE; LIMITATION. Except as
provided by agreement of the parties or the rules governing the
arbitration, a party may challenge an arbitrator only if
circumstances exist that give rise to justifiable doubts as to
the arbitrator's impartiality, independence, or possession of a
qualification on which the parties have agreed.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.058. CHALLENGE AFTER APPOINTMENT. A party who
appointed or participated in the appointment of an arbitrator may
challenge that arbitrator only for a reason that the party
becomes aware of after the appointment is made.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.059. CHALLENGE PROCEDURE. (a) The parties may agree
on a procedure for challenging an arbitrator. A decision reached
under that procedure is final.
(b) If there is not an agreement under Subsection (a), a party
challenging an arbitrator shall send a written statement of the
reason for the challenge to the arbitration tribunal. The party
shall send the statement not later than the 15th day after the
later date the party becomes aware of:
(1) the constitution of the tribunal; or
(2) a circumstance referred to in Section 172.057 or 172.058.
(c) Unless the arbitrator challenged under Subsection (b)
withdraws from office or the other party agrees to the challenge,
the arbitration tribunal shall decide the challenge.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.060. APPEAL OF UNSUCCESSFUL CHALLENGE. (a) If a
challenge under Sections 172.059(b) and (c) is unsuccessful, the
challenging party, not later than the 30th day after the date the
party receives notice of the decision rejecting the challenge,
may request the district court of the county in which the place
of arbitration is located to decide the challenge.
(b) The court shall sustain the challenge if the facts support a
finding that grounds under Section 172.057 fairly exist.
(c) The decision of the court is final and not subject to
appeal.
(d) While a request under Subsection (a) is pending, the
arbitration tribunal, including the challenged arbitrator, may
continue the arbitration and make an award.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.061. FAILURE OR IMPOSSIBILITY TO ACT. (a) The mandate
of an arbitrator terminates if the arbitrator:
(1) is unable to perform the arbitrator's functions or for
another reason fails to act without undue delay; and
(2) withdraws from office or each party agrees to the
termination.
(b) If there is a controversy concerning the termination of the
arbitrator's mandate under Subsection (a), a party may request
the district court of the county in which the place of
arbitration is located to decide the termination. The decision of
the court is not subject to appeal.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.062. TERMINATION OF MANDATE. The mandate of an
arbitrator terminates:
(1) on withdrawal from office;
(2) when the parties agree; or
(3) as provided by Section 172.059, 172.060, or 172.061.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.063. SUBSTITUTION OF ARBITRATOR. (a) When the mandate
of an arbitrator terminates, a substitute arbitrator shall be
appointed according to the rules that were applicable to the
appointment of the arbitrator being replaced.
(b) Except as agreed by the parties:
(1) if the sole or presiding arbitrator is replaced, a hearing
previously held shall be repeated; and
(2) if an arbitrator other than the sole or presiding arbitrator
is replaced, a hearing previously held may be repeated at the
discretion of the arbitration tribunal.
(c) Except as agreed by the parties, an order or ruling of the
arbitration tribunal made before the replacement of an arbitrator
under this section is not invalid because there has been a change
in the composition of the tribunal.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.064. WITHDRAWAL OF ARBITRATOR. The withdrawal of an
arbitrator from office or the agreement of a party to the
termination of the mandate of an arbitrator under Section
172.059(c) or Section 172.061 does not imply acceptance of the
validity of a ground referred to in Section 172.057, 172.058, or
172.061.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
SUBCHAPTER D. ARBITRATION TRIBUNAL
Sec. 172.081. DECISION OF ARBITRATION TRIBUNAL. (a) Except as
agreed by the parties or as provided by Subsection (b), in an
arbitration with more than one arbitrator, a decision of the
arbitration tribunal must be made by a majority of its members.
(b) If authorized by the parties or all the members of the
arbitration tribunal, a presiding arbitrator may decide a
procedural question.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.082. DETERMINATION OF JURISDICTION OF ARBITRATION
TRIBUNAL. (a) The arbitration tribunal may rule on its own
jurisdiction, including an objection with respect to the
existence or validity of the arbitration agreement. For that
purpose, an arbitration clause that is part of a contract is an
agreement independent of the other terms of the contract. A
decision by the tribunal that the contract is void does not make
the arbitration clause invalid.
(b) A party may not plead that the arbitration tribunal does not
have jurisdiction after the submission of the statement of
defense. A party is not precluded from pleading because the party
has appointed or participated in the appointment of an
arbitrator.
(c) A party may plead that the arbitration tribunal is exceeding
the scope of its authority only when the matter alleged to be
beyond the scope of its authority is raised during the
arbitration.
(d) The arbitration tribunal may allow a plea after the period
described by Subsection (b) or (c) if the tribunal considers the
delay justified.
(e) The arbitration tribunal may rule on a plea described by
Subsection (b), (c), or (d) as a preliminary question or in an
award on the merits.
(f) If the arbitration tribunal rules as a preliminary question
that it has jurisdiction, a party waives objection to the ruling
unless the party, not later than the 30th day after the date the
party receives notice of that ruling, requests the district court
of the county in which the place of arbitration is located to
decide the matter. The decision of the court is not subject to
appeal.
(g) While a request under Subsection (f) is pending before the
court, the arbitration tribunal may continue the arbitration and
make an award.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.083. INTERIM MEASURES ORDERED BY ARBITRATION TRIBUNAL.
(a) Except as agreed by the parties, the arbitration tribunal,
at the request of a party, may order a party to take an interim
measure of protection that the tribunal considers necessary
concerning the subject matter of the dispute.
(b) The arbitration tribunal may require a party to provide
appropriate security in connection with the interim measure
ordered.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
SUBCHAPTER E. ARBITRATION PROCEEDINGS
Sec. 172.101. EQUAL TREATMENT OF PARTIES. The arbitration
tribunal shall:
(1) treat each party with equality; and
(2) give each party a full opportunity to present the party's
case.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-10 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.102. SUBSTANTIVE RULES. (a) The arbitration tribunal
shall decide the dispute according to the rules of law designated
by the parties as applicable to the substance of the dispute.
(b) Unless otherwise expressed, a designation by the parties of
the law or legal system of a given state refers to the
substantive law of that state and not to conflict-of-laws rules.
(c) If the parties do not make a designation under Subsection
(a), the arbitration tribunal shall apply the law determined by
the conflict-of-laws rules that the tribunal considers
applicable.
(d) The arbitration tribunal shall decide ex aequo et bono or as
amiable compositeur if each party has expressly authorized it to
do so.
(e) In each case, the arbitration tribunal shall:
(1) decide in accordance with the terms of the contract; and
(2) take into account the usages of the trade applicable to the
transaction.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-11 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.103. RULES OF PROCEDURE. (a) The parties may agree on
the procedure to be followed by the arbitration tribunal in
conducting the arbitration, subject to this chapter.
(b) If the parties do not agree, the arbitration tribunal may
conduct the arbitration in the manner it considers appropriate,
subject to this chapter.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-12 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.104. RULES OF EVIDENCE. The power of the arbitration
tribunal under Section 172.103(b) includes the power to determine
the admissibility, relevance, materiality, and weight of any
evidence.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-13 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.105. SUBPOENA. (a) The arbitration tribunal may issue
a subpoena as provided by Section 171.051.
(b) Section 171.052 applies with respect to a subpoena issued
under this section.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-14 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.106. PLACE OF ARBITRATION. (a) The parties may agree
on the place of arbitration.
(b) If the parties do not agree, the arbitration tribunal shall
determine the place of arbitration considering the circumstances
of the case, including the convenience of the parties.
(c) Except as agreed by each party, the arbitration tribunal may
meet at any place it considers appropriate for:
(1) consultation among its members;
(2) hearing of witnesses, experts, or the parties; or
(3) inspection of documents, goods, or other property.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-15 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.107. COMMENCEMENT OF ARBITRATION. Except as agreed by
the parties, the arbitration begins on the date a request for the
dispute to be referred to arbitration is received by the
respondent.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.108. LANGUAGE. (a) The parties may agree on the
language or languages to be used in the arbitration.
(b) If the parties do not agree, the arbitration tribunal shall
determine the language or languages to be used in the
arbitration.
(c) Except as provided by the agreement or determination, the
agreement or determination applies to each:
(1) written statement by a party;
(2) hearing; and
(3) award, decision, or other communication by the arbitration
tribunal.
(d) The arbitration tribunal may order that documentary evidence
be accompanied by a translation into the selected language or
languages.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.109. STATEMENT OF CLAIM OR DEFENSE. (a) Within the
period agreed on by the parties or determined by the arbitration
tribunal:
(1) the claimant shall state:
(A) the facts supporting the claim;
(B) the points at issue; and
(C) the relief or remedy sought; and
(2) the respondent shall state the defense.
(b) A party may submit with the party's statement any document
the party considers relevant or may add a reference to a document
or other evidence the party will submit.
(c) The parties may otherwise agree as to the required elements
of the statements required by Subsection (a).
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.110. SUPPLEMENT OR AMENDMENT TO STATEMENT. A party may
amend or supplement a claim or defense during the arbitration
unless:
(1) the parties have otherwise agreed; or
(2) the arbitration tribunal considers it inappropriate to allow
the amendment or supplement considering the delay in making the
amendment or supplement.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.111. HEARINGS. (a) Except as agreed by the parties,
the arbitration tribunal shall decide whether to:
(1) hold oral hearings for the presentation of evidence or for
oral argument; or
(2) conduct the arbitration on the basis of documents and other
materials.
(b) Unless the parties have agreed that oral hearings are not to
be held, the arbitration tribunal shall, on request of a party,
hold an oral hearing at an appropriate stage of the arbitration.
(c) Each party shall be given sufficient advance notice of a
hearing or meeting of the arbitration tribunal to permit
inspection of documents, goods, or other property.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.112. HEARING OR MEETING IN CAMERA. Except as agreed by
the parties, the arbitration tribunal shall hold in camera:
(1) an oral hearing; or
(2) a meeting in the arbitration.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.113. WRITTEN INFORMATION. (a) A statement, document,
or other information supplied to or an application made to the
arbitration tribunal by a party shall be communicated to the
other party.
(b) An expert report or evidentiary document on which the
arbitration tribunal may rely in making a decision shall be
communicated to each party.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.114. DEFAULT OF PARTY. (a) Except as agreed by the
parties, the arbitration tribunal shall terminate the arbitration
if the claimant without showing sufficient cause fails to
communicate the statement of claim required under Section
172.109.
(b) Except as agreed by the parties, if the respondent without
showing sufficient cause fails to communicate the statement of
defense as provided by Section 172.109, the arbitration tribunal
shall continue the arbitration without treating that failure as
an admission of the claimant's allegations.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.115. AWARD AFTER PARTY FAILS TO APPEAR OR PRODUCE
EVIDENCE. Except as agreed by the parties, if a party without
showing sufficient cause fails to appear at an oral hearing or to
produce documentary evidence, the arbitration tribunal may
continue the arbitration and make the arbitration award based on
the evidence before it.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.116. APPOINTED EXPERT. (a) Except as agreed by the
parties, the arbitration tribunal may:
(1) appoint an expert to report to it on a specific issue to be
determined by the tribunal; and
(2) require a party to:
(A) give the expert relevant information; or
(B) produce or provide access to relevant documents, goods, or
other property.
(b) Except as agreed by the parties, if a party requests or if
the arbitration tribunal considers it necessary, the expert
shall, after delivery of a written or oral report, participate in
an oral hearing at which each party may:
(1) question the expert; and
(2) present an expert witness on the issue.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.117. SETTLEMENT. (a) An arbitration tribunal may:
(1) encourage settlement of the dispute; and
(2) with the agreement of the parties, use mediation,
conciliation, or another procedure at any time during the
arbitration to encourage settlement.
(b) The arbitration tribunal shall terminate the arbitration if
the parties settle the dispute.
(c) If requested by the parties and not objected to by the
arbitration tribunal, the tribunal shall record the settlement in
the form of an award on agreed terms.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.118. TERMINATION OF PROCEEDINGS. (a) An arbitration
is terminated by the final arbitration award or by an order of
the arbitration tribunal under Subsection (b). The award is final
on the expiration of the applicable period under Section 172.147.
(b) The arbitration tribunal shall issue an order for the
termination of the arbitration if:
(1) the claimant withdraws the claim, unless the respondent
objects to the order and the arbitration tribunal recognizes a
legitimate interest on the respondent's part in obtaining a final
settlement of the dispute;
(2) the parties agree to the termination of the arbitration; or
(3) the tribunal finds that continuation of the arbitration is
unnecessary or impossible.
(c) Subject to Sections 172.147, 172.148, and 172.149, the
mandate of the arbitration tribunal ends with the termination of
the arbitration.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
SUBCHAPTER F. ARBITRATION AWARD
Sec. 172.141. FORM AND CONTENT OF ARBITRATION AWARD. (a) An
arbitration award must be in writing and signed by all the
members of the arbitration tribunal. In an arbitration with more
than one arbitrator, the signatures of the majority of the
members of the tribunal are sufficient if the reason for an
omitted signature is stated.
(b) The arbitration award must state the reasons on which it is
based, unless the parties have agreed that no reasons are to be
given, or the award is an award on agreed terms under Section
172.117.
(c) The arbitration award must state its date and the place of
arbitration as determined under Section 172.106. The award is
considered to have been made at that place.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.142. DELIVERY OF AWARD. After the arbitration award is
made, a signed copy shall be delivered to each party.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.143. INTERIM AWARD. (a) The arbitration tribunal may,
at any time during the arbitration, make an interim arbitration
award on a matter with respect to which it may make a final
award.
(b) An interim arbitration award is enforceable in the same
manner as a final award.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.144. INTEREST. Except as agreed by the parties, the
arbitration tribunal may award interest.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.145. COSTS. (a) Except as agreed by the parties, an
award of costs of an arbitration is at the discretion of the
arbitration tribunal.
(b) In making an order for costs:
(1) the arbitration tribunal may include any expenses incurred
in connection with the arbitration, including:
(A) the fees and expenses of the arbitrators and expert
witnesses;
(B) legal fees and expenses; and
(C) administration fees of the institution supervising the
arbitration; and
(2) the tribunal may specify:
(A) the party entitled to costs;
(B) the party required to pay costs;
(C) the amount of costs or method of determining that amount;
and
(D) the manner in which the costs are to be paid.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.146. AWARD ON AGREED TERMS. (a) The arbitration
tribunal shall make an award on agreed terms as provided by
Section 172.117. An award on agreed terms must state that it is
an arbitration award.
(b) An award on agreed terms has the same status and effect as
any other arbitration award on the substance of the dispute.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.147. CORRECTION AND INTERPRETATION OF AWARDS. (a) Not
later than the 30th day after the date of receipt of the
arbitration award, unless another period has been agreed to by
the parties, a party may request the arbitration tribunal to:
(1) correct in the award a computation, clerical, or
typographical error or a similar error; and
(2) interpret a part of the award, if agreed by the parties.
(b) If the arbitration tribunal considers a request under
Subsection (a) to be justified, it shall make the correction or
give the interpretation not later than the 30th day after the
date of receipt of the request. The interpretation or correction
becomes part of the arbitration award.
(c) The arbitration tribunal may correct an error described by
Subsection (a)(1) on its own initiative not later than the 30th
day after the date of the arbitration award.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.148. ADDITIONAL AWARD. (a) Except as agreed by the
parties, a party may request, not later than the 30th day after
the date of receipt of the arbitration award, that the
arbitration tribunal make an additional award for a claim
presented in the arbitration but omitted from the award.
(b) If the arbitration tribunal considers the request to be
justified, the tribunal shall make the additional award not later
than the 60th day after the date of receipt of the request.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.149. EXTENSION OF TIME. The arbitration tribunal may,
if necessary, extend the period within which it may make a
correction, give an interpretation, or make an additional award
under Section 172.147 or 172.148.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.150. APPLICABLE LAW. Sections 172.141, 172.142,
172.144, and 172.145 apply to:
(1) a correction or interpretation of an arbitration award under
Section 172.147; or
(2) an additional award made under Section 172.148.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
SUBCHAPTER G. JUDICIAL PROCEEDINGS
Sec. 172.171. ROLE OF COURT. A court may not intervene in a
matter governed by this chapter except as provided by this
chapter or federal law.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.172. ASSISTANCE IN TAKING EVIDENCE. The arbitration
tribunal or a party with the approval of the tribunal may request
assistance from a district court in taking evidence, and the
court may provide the assistance according to its rules on taking
evidence. The tribunal or a party shall select the district court
in the manner provided by Section 171.096.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.173. CONSOLIDATION. (a) If the parties to two or more
arbitration agreements agree, in the respective arbitration
agreements or otherwise, to consolidate the arbitrations arising
out of the agreements, a district court, on application by a
party with the consent of each other party to the agreements,
may:
(1) order the arbitrations consolidated on terms the court
considers just and necessary;
(2) if all the parties cannot agree on a tribunal for the
consolidated arbitration, appoint an arbitration tribunal as
provided by Section 172.055; and
(3) if all the parties cannot agree on any other matter
necessary to conduct the consolidated arbitration, make any other
order the court considers necessary.
(b) The arbitration tribunal or the party shall select the
district court in the manner provided by Section 171.096.
(c) This section does not prevent the parties to two or more
arbitrations from agreeing to consolidate those arbitrations and
taking any step necessary to effect that consolidation.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.174. STAY OF COURT PROCEEDINGS. (a) On request of a
party, a court in which a pending judicial proceeding is being
brought by a party to an arbitration agreement to obtain relief
with respect to a matter covered by the arbitration agreement
shall:
(1) stay the judicial proceeding; and
(2) refer the parties to arbitration.
(b) A party may not make a request for a stay after the time the
requesting party submits the party's first statement on the
substance of the dispute.
(c) The court may not stay the proceeding if it finds that the
agreement is void, inoperable, or incapable of being performed.
(d) An arbitration may begin or continue, and an arbitration
tribunal may make an award, while an action described in this
section is pending before the court.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.175. INTERIM ORDERS. (a) A party to an arbitration
agreement may request an interim measure of protection from a
district court before or during an arbitration.
(b) A party to an arbitration may request from the court
enforcement of an order of an arbitration tribunal granting an
interim measure of protection under Section 172.083. The court
shall grant enforcement as provided by the law applicable to the
type of interim relief requested.
(c) In connection with a pending arbitration, the court may take
appropriate action, including:
(1) ordering an attachment issued to assure that the award to
which the applicant may be entitled is not rendered ineffectual
by the dissipation of party assets; or
(2) granting a preliminary injunction to protect a trade secret
or to conserve goods that are the subject matter of the dispute.
(d) In considering a request for interim relief, the court shall
give preclusive effect to a finding of fact of the arbitration
tribunal in the arbitration, including a finding of fact relating
to the probable validity of the claim that is the subject of the
order for interim relief that the tribunal has granted, if the
interim order is consistent with public policy.
(e) If the arbitration tribunal has not ruled on an objection to
its jurisdiction, the court may not grant preclusive effect to
the tribunal's finding until the court makes an independent
finding as to the jurisdiction of the tribunal. If the court
rules that the tribunal did not have jurisdiction under
applicable law, the court shall deny the application for interim
measures of relief.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
SUBCHAPTER H. PROVISIONS RELATING ONLY TO CONCILIATION
Sec. 172.201. POLICY. It is the policy of this state to
encourage parties to an international commercial agreement or
transaction that qualifies for arbitration or conciliation under
this chapter to resolve disputes arising from those agreements or
transactions through conciliation.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-18 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.202. APPOINTMENT OF CONCILIATOR. The parties to an
agreement or transaction may select or permit an arbitration
tribunal or other third party to select one or more persons to
serve as the conciliator or conciliators to assist the parties in
an independent and impartial manner to reach an amicable
settlement of the dispute.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-19 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.203. CONDUCT OF CONCILIATION. (a) A conciliator:
(1) shall be guided by principles of objectivity, fairness, and
justice; and
(2) shall consider, among other things:
(A) the rights and obligations of the parties;
(B) the usages of the trade concerned; and
(C) the circumstances surrounding the dispute, including any
previous practices between the parties.
(b) The conciliator may conduct the conciliation in a manner
that the conciliator considers appropriate, considering the
circumstances of the case, the wishes of the parties, and the
desirability of a speedy settlement of the dispute.
(c) Except as provided by this chapter, a law of this state
governing procedure, other than this chapter, does not apply to
conciliation under this chapter.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-20 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.204. REPRESENTATION AND ASSISTANCE. In a conciliation
proceeding, each party may appear in person or be represented or
assisted by a person of the party's choice.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-21 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.205. DRAFT CONCILIATION SETTLEMENT. (a) At any time
during the conciliation, the conciliator may prepare a draft
conciliation settlement and send a copy to each party, stating
the time within which each party must approve the settlement. The
draft conciliation settlement may include the assessment and
apportionment of costs between the parties.
(b) A party is not required to accept a proposed conciliation
settlement.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-22 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.206. CONFIDENTIALITY. (a) Evidence of anything said
or of an admission made in the course of a conciliation is not
admissible in evidence, and disclosure of that evidence may not
be compelled in an arbitration or civil action in which, under
law, testimony may be compelled to be given.
(b) Except as provided by a document prepared for the purpose
of, in the course of, or pursuant to the conciliation, the
document or a copy of the document is not admissible in evidence,
and disclosure of the document may not be compelled in an
arbitration or civil action in which, under law, testimony may be
compelled to be given.
(c) Subsection (a) does not limit the admissibility of evidence
if each party participating in conciliation consents to the
disclosure.
(d) If evidence is offered in violation of this section, the
arbitration tribunal or the court shall make any order it
considers appropriate to deal with the matter, including an order
restricting the introduction of evidence or dismissing the case
without prejudice.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-23 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.207. STAY OF ARBITRATION AND RESORT TO OTHER
PROCEEDINGS. (a) The agreement of the parties to submit a
dispute to conciliation is an agreement of the parties to stay a
judicial proceeding or arbitration from the beginning of
conciliation until the termination of conciliation.
(b) Each applicable limitation period, including a period of
prescription, is tolled or extended on the beginning of a
conciliation under this chapter for each party to the
conciliation until the 10th day following the date of termination
of the conciliation.
(c) For purposes of this section, conciliation begins when a
party requests conciliation of a dispute and each other party
agrees to participate in the conciliation.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-24 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.208. TERMINATION OF CONCILIATION. (a) A conciliation
proceeding may be terminated as to each party by:
(1) a written declaration of each conciliator, after
consultation with the parties, that further efforts at
conciliation are not justified, on the date of the declaration;
(2) a written declaration of each party addressed to each
conciliator that the conciliation is terminated, on the date of
the declaration; or
(3) the signing of a settlement agreement by each party, on the
date of the agreement.
(b) The conciliation proceedings may be terminated as to
particular parties by:
(1) a written declaration of a party to each other party and
each conciliator, if appointed, that the conciliation is
terminated as to that party, on the date of the declaration; or
(2) the signing of a settlement agreement by some of the
parties, on the date of the agreement.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-25 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.209. CONFLICT OF INTEREST. Except as provided by rules
adopted for the conciliation or arbitration, a person who has
served as conciliator may not be appointed as an arbitrator for
or take part in an arbitration or judicial proceeding in the same
dispute unless each party consents to the participation.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-26 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.210. PARTICIPATION NOT WAIVER OF RIGHTS. (a) A party
by submitting to conciliation does not waive a right or remedy
that party would have had if conciliation had not been initiated.
(b) Subsection (a) does not apply to the waiver of a right or
remedy stated in a settlement resulting from the conciliation.
Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1,
1989. Redesignated from Vernon's Ann.Civ.St. art. 249-27 and
amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff.
Sept. 1, 1997.
Sec. 172.211. ENFORCEABILITY. A conciliation agreement has the
same force and effect as a final arbitration award if the
agreement:
(1) settles the dispute;
(2) is in writing; and
(3) is signed by each conciliator and each party or a
representative of each party.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.212. COSTS. (a) On termination of the conciliation
proceedings, the conciliator shall set the costs of the
conciliation and give written notice of the costs to each party.
(b) The parties shall bear the costs equally unless the
settlement agreement provides for a different apportionment. A
party shall bear any other expense incurred by that party.
(c) In this section, "costs" includes only:
(1) a reasonable fee to be paid to each conciliator;
(2) travel and other reasonable expenses of each conciliator and
each witness requested by the conciliator with the consent of
each party;
(3) the cost of expert advice requested by the conciliator with
the consent of each party; and
(4) any court cost.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.213. NO CONSENT TO JURISDICTION. A request for
conciliation, a consent to participate or participation in the
conciliation, or the entering into a conciliation agreement or
settlement is not consent to the jurisdiction of a court in this
state if conciliation fails.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.214. NOT SUBJECT TO SERVICE OF PROCESS. A conciliator,
party, or representative of a conciliator or party, while present
in this state to arrange for or participate in conciliation under
this chapter, is not subject to service of process in a civil
matter related to the conciliation.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.
Sec. 172.215. CONCILIATOR IMMUNE. A conciliator is not liable
in an action for damages resulting from an act or omission in the
performance of the person's role as a conciliator in a proceeding
subject to this chapter.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1,
1997.