2009 Texas Code
CIVIL PRACTICE AND REMEDIES CODE
TITLE 7. ALTERNATE METHODS OF DISPUTE RESOLUTION
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.

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