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Under the arbitration rules, if each party agrees that the final arbitration award can be entered as a judgment in any federal or state court that has original jurisdiction, then that filed arbitration award will give that court the power to enforce the arbiter's decision.
Unlike litigation, where disputes are resolved in court, arbitration takes place in a private setting, typically chosen by the parties involved. It is characterized by its voluntary nature, meaning that both parties must agree to submit their dispute to arbitration.
An award holder must file its application for the enforcement of an arbitral award (whether foreign or domestic) before the competent court in whose jurisdiction the assets of the award debtor are located (Executive Engineer v.
Under AAA rules, parties to AAA cases agree that the arbitration award can be entered as a judgment in any federal or state court with jurisdiction. This means that the court can enforce it like it was any other court judgment.
Recognition or confirmation of an award is usually sought by filing a petition. The party seeking recognition and enforcement or confirmation of an award must submit to the court a copy of the award and the parties' arbitration agreement.
Decisions indicate that a court may review an arbitrator's award if it appears that the arbitrator substituted his judgment for that of the parties, the award does not draw its essence from the contract, the award contains material error, and the award is against public law or policy.
There is limited jurisdiction to hear in federal court actions to enforce, vacate, or confirm an arbitration award. When brought in state court, generally these actions will need to comply with state arbitration law, not the FAA. §§ 2.3, 11.2. 2.
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.