ARTICLE 1 – INTRODUCTORY RULES.
ARTICLE 2 – SERVICE; CALCULATION OF PERIODS OF TIME.
ARTICLE 3 – STATEMENT OF CLAIM AND NOTICE OF ARBITRATION.
ARTICLE 4 – STATEMENT OF DEFENSE.
ARTICLE 5 – AMENDMENTS TO THE CLAIM OR DEFENSE.
ARTICLE 6 – REPRESENTATION.
ARTICLE 7 – COMPOSITION OF THE ARBITRAL TRIBUNAL.
ARTICLES (8 TO 10) – APPOINTMENT OF ARBITRATORS.
ARTICLE 9 – THREE ARBITRATORS.
ARTICLE 10 – MULTIPLE PARTIES.
ARTICLES (11 TO 14) – CHALLENGES OF ARBITRATORS.
ARTICLE 12 – GROUNDS FOR CHALLENGE
ARTICLE 13 – PROCEDURES FOR CHALLENGE.
ARTICLE 14 – TJC OVERSIGHT.
ARTICLE 15 – REPLACEMENT OF AN ARBITRATOR.
ARTICLE 16 – REPETITION OF HEARINGS IN THE EVENT OF THE REPLACEMENT OF AN ARBITRATOR.
ARTICLE 17 – ARBITRAL PROCEEDINGS.
ARTICLE 18 – PLACE OF ARBITRATION.
ARTICLE 19 – LANGUAGE.
ARTICLE 20 – CONTESTING JURISDICTION OF THE ARBITRAL TRIBUNAL.
ARTICLE 21 – FURTHER WRITTEN STATEMENTS.
ARTICLE 22 – PERIODS OF TIME.
ARTICLES (23 AND 24) – EVIDENCE AND HEARINGS.
ARTICLE 24 – HEARINGS.
ARTICLE 25 – INTERIM MEASURES OF PROTECTION.
ARTICLE 26 – EXPERTS.
ARTICLE 27 – DEFAULT.
ARTICLE 28 – CLOSE OF HEARINGS.
ARTICLE 29 – WAIVER.
ARTICLE 30 – THE AWARD.
ARTICLE 31 – FORM AND EFFECT OF THE AWARD.
ARTICLE 32 – APPLICABLE LAW AND REMEDIES.
ARTICLE 33 – SETTLEMENT, TERMINATION OF PROCEEDINGS.
ARTICLE 34 – INTERPRETATION OF THE AWARD.
ARTICLE 35 – CORRECTION OF THE AWARD.
ARTICLE 36 – ADDITIONAL AWARD.
ARTICLES (37 TO 39) – COSTS AND FEES.
ARTICLE 37 – COSTS.
ARTICLE 38 – FEES.
ARTICLE 39 – APPORTIONMENT OF COSTS AND FEES.
ARTICLE 40 – DEPOSIT OF COSTS.
ARTICLE 41 – EXPEDITED ARBITRATION.
ARTICLE 42 – SMALL CLAIMS; EMPLOYMENT ARBITRATION; CONSUMER ARBITRATION.
ARTICLE 43 – MISCELLANEOUS.
ARTICLE 44 – EXCLUSION FROM LIABILITY.

ARTICLE 1 – INTRODUCTORY RULES

If parties in a dispute have agreed in writing that that the dispute shall be referred to arbitration at the Texas Justice Center (“TJC”) or under the TJC Arbitration Rules (“Rules”), then such disputes shall be resolved in accordance with these Rules subject to such modification as the parties may agree in writing.

These Rules shall govern the arbitration except that where any of these Rules is in conflict with a provision of the law applicable to the arbitration from which the parties cannot deviate, that provision shall prevail.

It is TJC’s intention, to which each arbitrator accepting appointment agrees to adhere, that arbitration tribunals shall seek to focus and narrow issues in dispute from the outset of, and throughout, the proceedings so that ultimate disposition may occur as rapidly, expeditiously, and cost effectively as possible.

Unless otherwise agreed in writing by all parties to arbitration, all proceedings, communications, papers, and documents that are a part of arbitration under these Rules are strictly confidential and no party shall disclose any information to third parties.

TJC arbitrators are committed to:

1. Early pre-hearing conferences;
2. Early refinement of issues;
3. Establishment of expeditious schedules;
4. Discouraging wasteful pre-hearing activities;
5. Thorough arbitrator preparation;
6. Using available technology; and
7. Encouraging settlement

ARTICLE 2 – SERVICE; CALCULATION OF PERIODS OF TIME

For the purposes of these Rules, any notice, including a notification, communication or proposal, is deemed to have been served if it is physically delivered to the addressee or if it is delivered at the party’s habitual residence, place of business or mailing address, or, if none of these can be found after making reasonable inquiry, then at the addressee’s last-known residence or place of business. Notice shall be deemed to have been served on the day it is so delivered. Notice by email shall be deemed to have been served when sent.

Failure of a party or its counsel to check spam folders or to otherwise ensure receipt of email from the TJC or the opposing party shall not be a defense against notice or service requirements.

After service of the Statement of Claim, future notices shall be delivered via email to the valid email addresses provided by the parties and/or their representatives. Any party may agree to accept service of the Statement of Claim by email.

For the purposes of calculating a period of time under these Rules, such period shall begin to run on the day following the day when a notice, notification, communication or proposal is received. If the last day of such period is an official holiday or a non-business day at the residence or place of business of the addressee, the period is extended until the first business day which follows. Official holidays or non-business days occurring during the running of the period of time are included in calculating the period.

ARTICLE 3 – STATEMENT OF CLAIM AND NOTICE OF ARBITRATION

The party initiating arbitration (hereinafter called the “Claimant“) shall submit a written “Statement of Claim” to TJC at claims@tjcadr.com; and to the other party (hereinafter called the “Respondent“) via U.S. Mail and email to the last known mailing and email address of Respondent.

Arbitral proceedings shall be deemed to commence on the date on which the Statement of Claim is received by TJC.

The Statement of Claim shall include the following:
1. A notice of arbitration demanding that the dispute be referred to arbitration;
2. The names and addresses, including email addresses, of the parties;
3. A reference to the arbitration clause or the separate arbitration agreement that is invoked;
4. A reference to any contract out of which the dispute arises;
5. A concise statement of facts supporting the claim and an indication of the amount involved, if any;
6. The relief or remedy sought;
7. A proposal as to the number of arbitrators (i.e. one or three), if parties have not previously agreed thereon;
8. A proposal nominating an arbitrator in a three-arbitrator arbitration;
9. A copy of the agreement to arbitrate; and
10. A proposal as to the language(s) of arbitration, if parties have not previously agreed thereon.

The Claimant may annex to Claimant’s Statement of Claim all documents he deems relevant or may add a reference to the documents or other evidence he will submit.

TJC shall send a copy of the Statement of Claim and the documents annexed thereto to the Respondent for Respondent’s Statement of Defense.

TJC requires that the parties use its form Statement of Claim, or otherwise conform the Statement of Claim to the one found by following the link in this paragraph.

ARTICLE 4 – STATEMENT OF DEFENSE

Within a period of twenty-one (21) days after the date of receiving the Statement of Claim, the Respondent shall communicate Respondent’s Statement of Defense in writing to TJC and to the Claimant via email to the addresses provided by the TJC.

The “Statement of Defense” shall reply to the particulars (e), (f) and (g) of the Statement of Claim (Article 3, paragraph 3) and conform to the TJC’s form Statement of Defense found by clicking on the link in this paragraph. The Respondent may annex to Respondent’s statement the documents on which Respondent relies for Respondent’s defense or may add a reference to the documents or other evidence Respondent will submit.

In Respondent’s Statement of Defense, or at a later stage in the arbitral proceedings if the arbitral tribunal decides that the delay was justified under the circumstances, the Respondent may make a counter-claim arising out of the same operative set of facts or on a claim arising out of a contract for the purpose of a set-off.

Any timely made counter-claim shall have the effect of being a Statement of Claim, and the party against whom the counter-claim is made shall communicate its own Statement of Defense in writing to the TJC and the other parties within twenty-one (21) days of receiving the counter-claim.

ARTICLE 5 – AMENDMENTS TO THE CLAIM OR DEFENSE

During the course of the arbitral proceedings either party may amend or supplement its claims or defenses unless the arbitral tribunal considers it inappropriate to allow such amendment having regard to the resulting delay or prejudice to the other party, or any other circumstances. However, a claim may not be amended in such a manner that the amended claim falls outside the scope of the arbitration clause or separate arbitration agreement.

ARTICLE 6 – REPRESENTATION

The parties may be represented by persons of their choice. The names and addresses, including email addresses, of such persons must be communicated in writing to the other party. When a party is represented and their representative has appeared in the case, all future service, notifications, and communications must be made only to the parties’ representative.

ARTICLE 7 – COMPOSITION OF THE ARBITRAL TRIBUNAL

If the parties have not previously agreed on the number of arbitrators (i.e. one or three) within twenty-eight (28) days after the receipt by the Respondent of the notice of arbitration, a sole arbitrator shall be appointed.

ARTICLES (8 TO 10) – APPOINTMENT OF ARBITRATORS

ARTICLE 8 – SOLE ARBITRATOR

If a sole arbitrator is to be appointed, TJC shall appoint the sole arbitrator as promptly as possible. In making the appointment TJC shall use the following list-procedure, unless both parties agree that the list-procedure should not be used or unless TJC determines in its discretion that the use of the list-procedure is not appropriate for the case:
1. TJC shall communicate to both parties an identical list containing no less than five (5) names;
2. Within seven (7) days after the receipt of this list, each party shall return the list to TJC after having stricken the name or names to which a party objects and numbered the remaining names on the list in the order of its preference;
3. If one or both of the parties strikes all five names on the first list, TJC shall send a second list and within seven (7) days of the receipt of the second list, each party shall return the list to TJC after having deleted the name or names to which it objects and numbered the remaining names on the list in order of its preference;
4. After the expiration of the above period of time TJC shall appoint the sole arbitrator from among the names approved on the lists returned to it and in accordance with the order of preference indicated by the parties;
5. If for any reason the appointment cannot be made according to this procedure, TJC may exercise its discretion in appointing the sole arbitrator.

In making the appointment, TJC shall have regard to such considerations as are likely to secure the appointment of an independent and impartial arbitrator and may take into account as well the experience and spoken languages of potential arbitrators.

The parties may select an arbitrator who is not currently on the TJC’s list of arbitrators so long as the arbitrator agrees to arbitrate under the Rules and administration of the TJC.

ARTICLE 9 – THREE ARBITRATORS

If three (3) arbitrators are to be appointed, each party shall nominate one arbitrator, subject to appointment and confirmation by TJC shall appoint the third arbitrator who will act as the presiding arbitrator of the tribunal in the same way as a sole arbitrator would be appointed under Article 8, unless the parties have provided that the arbitrators nominated by them shall agree on the third arbitrator. In such case TJC shall confirm the appointment of such third arbitrator.

Upon nominating an arbitrator, the party making the nomination shall notify the TJC and the other party. After nomination of an arbitrator by one party, the other party shall have no longer than seven (7) days to nominate its arbitrator. If the second arbitrator is not appointed within seven (7) days, the party having first nominated an arbitrator may apply to the TJC to appoint both the second and third arbitrators under Article 8, and the TJC must initiate the procedures under Article 8 for both the second and third arbitrators, one after the other.

Where the names of one or more persons are proposed for appointment as arbitrators, their full names, addresses, and languages spoken shall be indicated, together with a description of their qualifications.

The parties may select an arbitrator who is not currently on the TJC’s list of arbitrators so long as the arbitrator agrees to arbitrate under the Rules and administration of the TJC.

ARTICLE 10 – MULTIPLE PARTIES

Where there are multiple parties, whether as Claimant or as Respondent, and where the dispute is to be referred to three arbitrators, the multiple Claimants, jointly, and multiple Respondents, jointly shall nominate an arbitrator for confirmation pursuant to Article 9.

In the absence of such a joint nomination and where all parties are unable to agree to a method for the constitution of the arbitral tribunal, TJC may appoint each member of the arbitral tribunal and shall designate one of them to act as chairman of the arbitral tribunal. In such case, TJC shall choose any person it considers as suitable to act as arbitrator applying Article 9 when it considers it appropriate.

ARTICLES (11 TO 14) – CHALLENGES OF ARBITRATORS

ARTICLE 11 – INDEPENDENCE, DISCLOSURE

Every arbitrator must be and remain independent of the parties involved in the arbitration.

A prospective arbitrator shall disclose, to any party soliciting the arbitrator’s possible appointment, any circumstances likely to give rise to justifiable doubts as to the arbitrator’s impartiality or independence. An arbitrator, once appointed or chosen, shall disclose such circumstances to the parties unless they have already been informed of these circumstances

ARTICLE 12 – GROUNDS FOR CHALLENGE

Any arbitrator may be challenged if circumstances exist that give rise to justifiable doubts as to the arbitrator’s impartiality or independence.

A party may challenge its own appointed arbitrator only for reasons of which he becomes aware after the appointment has been made.

ARTICLE 13 – PROCEDURES FOR CHALLENGE

A party who intends to challenge an arbitrator shall send notice of said party’s challenge within fourteen (14) days after the appointment of the challenged arbitrator or within fourteen (14) days after the circumstances mentioned in Articles 11 and 12 became known to that party.

The party making the challenge shall notify TJC and the other party of the challenge. The notification shall be in writing and shall state the reasons for the challenge.

When an arbitrator has been challenged by one party, the other party may agree to the challenge. If the challenge is agreed, the procedure provided in Article 8 or 9 shall be used in full for the appointment of the substitute arbitrator, even if during the process of appointing the challenged arbitrator a party had failed to exercise its right to appoint or to participate in the appointment.

ARTICLE 14 – TJC OVERSIGHT

If the other party does not agree to the challenge and the challenged arbitrator does not withdraw, the decision on the challenge will be made by TJC.

If TJC sustains the challenge, a substitute arbitrator shall be appointed or chosen pursuant to the procedure applicable to the appointment or choice of an arbitrator as provided in Article 8.

ARTICLE 15 – REPLACEMENT OF AN ARBITRATOR

In the event of death or resignation of an arbitrator during the course of the arbitral proceedings, a substitute arbitrator shall be appointed or chosen pursuant to the procedure provided for in Articles 8 through 11 that was applicable to the appointment or choice of the arbitrator being replaced.

In the event that an arbitrator fails to act or in the event of the de jure or de facto impossibility of said arbitrator performing arbitral functions, the procedure for the challenge and replacement of an arbitrator as provided in the preceding articles shall apply.

ARTICLE 16 – REPETITION OF HEARINGS IN THE EVENT OF THE REPLACEMENT OF AN ARBITRATOR

If under Articles 13 to 15 the sole or presiding arbitrator is replaced, any hearings held previously shall be repeated unless all parties consent in writing to moving forward; if any other arbitrator is replaced, such prior hearings may be repeated at the discretion of the arbitral tribunal.

ARTICLE 17 – ARBITRAL PROCEEDINGS

Subject to these Rules, the arbitral tribunal may conduct the arbitration in such manner as it considers appropriate, provided the parties are treated with equality and that at any stage of the proceedings each party is given a full opportunity of presenting its case.

The arbitral tribunal, after consulting the parties, shall establish a provisional timetable that it intends to follow for the conduct of the arbitration and communicate it to the parties. Any subsequent modifications of the provisional timetable shall be communicated to the parties.

If either party so requests at any stage of the proceedings, the arbitral tribunal shall hold hearings for the presentation of evidence by witnesses, including expert witnesses, or for oral argument. In the absence of such a request, the arbitral tribunal shall decide whether to hold such hearings or whether the proceedings shall be conducted on the basis of documents and other materials.

All documents or information supplied to the arbitral tribunal by one party shall at the same time be communicated by that party to the other party.

ARTICLE 18 – PLACE OF ARBITRATION

Unless all parties agree otherwise, and subject to the approval of the arbitral tribunal, arbitration shall take place in person at the TJC.

In the event of arbitration involving international parties, the arbitral tribunal may determine the locale of the arbitration within the country agreed by the parties. It may hear witnesses and hold meetings for consultation among its members at any place it deems appropriate, having regard to the circumstances of the arbitration.

The arbitral tribunal may meet at any place it deems appropriate for the inspection of goods, other property or documents. The parties shall be given sufficient notice to enable them to be present at such inspection.

The award shall be made at the place of arbitration.

ARTICLE 19 – LANGUAGE

Subject to an agreement by the parties, the arbitral tribunal shall, promptly after its appointment, determine the language or languages to be used in the proceedings. This determination shall apply to the Statement of Claim, the Statement of Defense, and any further written statements and, if oral hearings take place, to the language or languages to be used in such hearings. Notwithstanding the foregoing, all communications to TJC shall be in English, and all communications from TJC shall be in English.

ARTICLE 20 – CONTESTING JURISDICTION OF THE ARBITRAL TRIBUNAL

The arbitral tribunal shall have the power to rule on objections to jurisdiction, including any objections with respect to the existence or validity of any arbitration clause or of a separate arbitration agreement.

The arbitral tribunal shall have the power to determine the existence or the validity of the contract of which an arbitration clause forms a part. For the purposes of Article 20, an arbitration clause which forms part of a contract and which provides for arbitration under these Rules shall be treated as an agreement independent of the other terms of the contract. A decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the invalidity of the arbitration clause.

A plea that the arbitral tribunal does not have jurisdiction shall be raised not later than in the Statement of Defense or, with respect to a counter-claim, in the Statement of Defense in response to the counter-claim.

In general, the arbitral tribunal should rule on a plea concerning its jurisdiction as a preliminary matter. However, the arbitral tribunal may proceed with the arbitration and rule on such a plea in their final award.

ARTICLE 21 – FURTHER WRITTEN STATEMENTS

The arbitral tribunal shall decide which further written statements (such as briefs or memoranda) in addition to the Statement of Claim and the Statement of Defense, shall be required from the parties or may be presented by them and shall fix the periods of time for communicating such statements.

ARTICLE 22 – PERIODS OF TIME

The periods of time fixed by the arbitral tribunal or TJC for the communication of written statements (including the Statement of Claim and Statement of Defense) should not exceed twenty-eight (28) days. However, the arbitral tribunal or TJC, as the case may be, may extend the time limits if it concludes that an extension is justified. Periods of time should ideally be set in multiples of seven (7) to avoid deadlines falling on weekends, absent good cause to use a different measurement of time.

ARTICLES (23 AND 24) – EVIDENCE AND HEARINGS

ARTICLE 23 – EVIDENCE; DISCOVERY

Each party shall have the burden of proving the facts relied on to support that party’s claim or defense.

The arbitral tribunal may, if it considers it appropriate, require a party to deliver to the tribunal and to the other party, within such a period of time as the arbitral tribunal shall decide, a summary of the documents, witnesses, and other evidence which that party intends to present in support of the facts in issue set out in its Statement of Claim or Statement of Defense.

At any time during the arbitral proceedings the arbitral tribunal may require the parties to produce documents, exhibits or other evidence within such a period of time as the tribunal shall determine.

Each party shall be entitled, at its own expense, one (1) deposition, which is to be taken no less than twenty-one (21) days prior to the date set for hearing. Any party may request additional depositions, which shall be granted at the discretion of the arbitral tribunal.

Written discovery may be permitted by the arbitral tribunal, at the discretion of the arbitrators, upon written request by a party. If permitted, the arbitral tribunal will issue an order setting the scope and limits of written discovery.

ARTICLE 24 – HEARINGS

In the event of an oral hearing, the arbitral tribunal shall give the parties adequate advance notice of the date, time and place thereof.

If witnesses are to give testimony, at least twenty-eight (28) days before the hearing each party shall communicate to the arbitral tribunal and to the other party the names and addresses of the witnesses it intends to present, the subjects of the testimony to be solicited, and the languages in which such witnesses will give their testimony. Any changes to the list must be submitted to the other parties and the arbitral tribunal at least fourteen (14) days before the hearing.

The arbitral tribunal shall make arrangements for the translation of oral statements made at a hearing and for a record of the hearing if either is deemed necessary by the tribunal under the circumstances of the case, or if the parties have agreed thereto and have communicated such agreement to the tribunal at least fourteen (14) days before the hearing.

Hearings shall be held in the TJC courtroom or other room sufficient in size for all parties unless the parties agree and the arbitral tribunal approves otherwise. The arbitral tribunal may require the retirement of any witness or witnesses during the testimony of other witnesses. The arbitral tribunal has discretion to determine the manner in which witnesses are examined.

Evidence may also be presented by affidavit, subject to the arbitral tribunal’s decision on whether to give weight to affidavits, or whether that witness shall be subject to cross-examination.

On application of a party and for use as evidence, the arbitral tribunal may permit a deposition to be taken, in the manner and upon the terms designated by the arbitrators, of a witness who cannot be subpoenaed or is unable to attend the hearing.

The arbitral tribunal shall determine the admissibility, relevance, materiality and weight of the evidence offered.

ARTICLE 25 – INTERIM MEASURES OF PROTECTION

At the request of either party, the arbitral tribunal may take any interim measures it deems necessary in respect of the subject matter of the dispute, including measures for the conservation of the goods, such as ordering their deposit with a third person or the sale of perishable goods.

Such interim measures may be established in the form of an interim order. The arbitral tribunal shall be entitled to require security for the costs of such measures.

A request for interim measures addressed by any party to a judicial authority shall not be deemed incompatible with the agreement to arbitrate, or as a waiver of that agreement.

ARTICLE 26 – EXPERTS

The arbitral tribunal may appoint one or more experts to report to it, in writing, on specific issues to be determined by the arbitral tribunal. A copy of the expert’s terms of reference, established by the arbitral tribunal, shall be communicated to the parties.

The parties shall give the expert any relevant information or produce for inspection any relevant documents or goods that he may require of them. Any dispute between a party and such expert as to the relevance of the required information or production shall be referred to the arbitral tribunal for decision.

Upon receipt of the expert’s report, the tribunal shall communicate a copy of the report to the parties who shall be given the opportunity to express, in writing, their opinion of the report. A party shall be entitled to examine any document on which the expert has relied in its report.

At the request of either party the expert, after delivery of the report, may be heard at a hearing where the parties shall have the opportunity to be present and to examine or cross-examine the expert. At this hearing either party may present expert witnesses in order to testify on the points at issue. The provisions of Article 24 shall be applicable to such proceedings.

Any party may hire its own experts at said party’s expense to support its claims or defenses.

ARTICLE 27 – DEFAULT

If, within the period of time fixed by the arbitral tribunal or these Rules, the Claimant has failed to communicate its claim without showing sufficient cause for such failure, the arbitral tribunal shall order the proceedings to continue.

If one of the parties, duly notified under these Rules, fails to (a) respond to an order of the arbitral tribunal, (b) comply with a deadline under these Rules or established by the arbitral tribunal, or (c) appear at a hearing, without showing sufficient cause for such failure, the arbitral tribunal may proceed with the arbitration.

If one of the parties, duly invited to produce documentary evidence, fails to do so within the established period of time, without showing sufficient cause for such failure, the arbitral tribunal may make the award on the evidence before it.

ARTICLE 28 – CLOSE OF HEARINGS

The arbitral tribunal may inquire of the parties if they have any further proof to offer or witnesses to be heard or submissions to make and, if there are none, it may declare the hearings closed.

The arbitral tribunal may, if it considers it necessary owing to exceptional circumstances, decide, on its own motion or upon application of a party, to reopen the hearings at any time before the award is made.

ARTICLE 29 – WAIVER

A party who knows that any provision of or requirement under these Rules has not been complied with and yet proceeds with the arbitration without promptly stating its objection to such non-compliance, shall be deemed to have waived its right to object.

ARTICLE 30 – THE AWARD

When there are three arbitrators, any award or other decision of the arbitral tribunal shall be made by a majority of the arbitrators.

In the case of questions of procedure, when there is no majority or when the arbitral tribunal so authorizes, the presiding arbitrator may decide the question, subject to revision, if any, by the arbitral tribunal.

The arbitrators shall make the final award within twenty-eight (28) days of the closing of the hearings. TJC may extend such time limit at its discretion.

ARTICLE 31 – FORM AND EFFECT OF THE AWARD

In addition to making a final award, the arbitral tribunal shall be entitled to make interim, interlocutory, or partial awards.

The award shall be made in writing and shall be final and binding on the The parties undertake to carry out the award without delay.

The arbitral tribunal shall state the reasons upon which the award is based, unless the parties have agreed that no reasons are to be given. The arbitral tribunal may consider the conduct of the parties during the arbitration when making its award and award fines or costs separate and aside from the final award.

An award shall be signed by the arbitrators and it shall contain the date on which and the place where the award was made. Where there are three arbitrators and one of them fails to sign, the award shall state the reason for absence of the signature.

The award shall be confidential unless all parties agree in writing otherwise.

Copies of the award signed by the arbitrators shall be communicated to the parties by the arbitral tribunal.

If the arbitration law of the country where the award is made requires that the award be filed or registered by the arbitral tribunal, the tribunal shall comply with this requirement within the period of time required by law.

ARTICLE 32 – APPLICABLE LAW AND REMEDIES

The arbitral tribunal shall apply the law designated by the parties. Failing such designation by the parties, the arbitral tribunal shall apply the law determined by the conflict of laws rules which it considers applicable.

The arbitral tribunal shall decide as amiable compositeur or ex aequo et bono only if the parties have expressly authorized the arbitral tribunal to do so and if the law applicable to the arbitral procedure permits such arbitration.

In all cases, the arbitral tribunal shall decide in accordance with the terms of any valid contract and shall take into account the usages of the trade applicable to the transaction.

Unless the parties agree otherwise, the parties expressly waive and forego any right to punitive, exemplary or similar damages unless a statute requires that compensatory damages be increased in a specified situation. This provision shall not apply to any award of arbitration costs or fines to a party to compensate for dilatory or bad faith conduct in the arbitration.

ARTICLE 33 – SETTLEMENT, TERMINATION OF PROCEEDINGS

If, before the award is made, the parties agree on a settlement of the dispute, the arbitral tribunal shall either issue an order for the termination of the arbitral proceedings or, if requested by both parties and accepted by the tribunal, record the settlement in the form of an arbitral award on agreed terms. The arbitral tribunal is not obliged to give reasons for such an award.

If, before the award is made, the continuation of the arbitral proceedings becomes unnecessary or impossible for any reason not mentioned in paragraph 1, the arbitral tribunal shall inform the parties of its intention to issue an order for the termination of the arbitration. The arbitral tribunal shall have the power to issue such an order unless a party raises justified grounds for objection.

Copies of the order for termination of the arbitral proceedings or of the arbitral award on agreed terms, signed by the arbitrators, shall be communicated by the TJC to the parties. Where an arbitral award on agreed terms is made, the provisions of Article 31, paragraphs 2 and 4 to 7, shall apply.

ARTICLE 34 – INTERPRETATION OF THE AWARD

Within fourteen (14) days after the receipt of the award, either party, with notice to the other party, may request that the arbitral tribunal give an interpretation of the award.

The interpretation shall be given in writing within fourteen (14) days after the receipt of the request. The interpretation shall form part of the award and the provisions of Article 31, paragraphs 2 to 7, shall apply.

ARTICLE 35 – CORRECTION OF THE AWARD

Within fourteen (14) days after the receipt of the award, either party, with notice to the other party, may request the arbitral tribunal to correct in the award any errors in computation, any clerical or typographical errors, or any errors of similar nature. The arbitral tribunal may within fourteen (14) days after the communication of the award make such corrections on its own initiative.

Such corrections shall be in writing, and the provisions of Article 31, paragraphs 2 to 7, shall apply.
If a correction is necessitated after fourteen (14) days, a court of competent jurisdiction may make such correction as long as all parties affected by the correction are properly served with notice of the request to the court. In the event the arbitral tribunal is required to testify in a correction proceeding permitted by this rule (and applicable law), the tribunal shall be entitled to its reasonable fees and costs by the requesting party.

ARTICLE 36 – ADDITIONAL AWARD

Within fourteen (14) days after the receipt of the award, either party, with notice to the other party, may request the arbitral tribunal to make an additional award as to claims presented in the arbitral proceedings but omitted from the award.

If the arbitral tribunal considers the request for an additional award to be justified and considers that the omission can be rectified without any further hearings or evidence, it shall complete its award within fourteen (14) days after the receipt of the request.

When an additional award is made, the provisions of Article 31, paragraphs 2 to 7, shall apply.

ARTICLES (37 TO 39) – COSTS AND FEES

ARTICLE 37 – COSTS

The arbitral tribunal shall fix the costs of arbitration in its award. The term “costs” includes only:

1. The fees of the arbitral tribunal to be stated separately as to each arbitrator;
2. The travel and other expenses incurred by the arbitrators;
3. The costs of expert advice and of other assistance required by the arbitral tribunal;
4. The travel and other expenses of witnesses to the extent such expenses are approved by the arbitral tribunal;
5. The costs for legal representation and assistance of the successful party if such costs were claimed during the arbitral proceedings, and only to the extent that attorney’s fees are required by applicable law and the arbitral tribunal determines that the amount of such costs is reasonable;
6. Administrative fees and expenses of

ARTICLE 38 – FEES

The fees of the arbitral tribunal shall be reasonable in amount, taking into account the amount in dispute, the complexity of the subject-matter, the time spent by the arbitrators and any other relevant circumstances of the case.

The arbitral tribunal shall fix its fees only after consultation with JTC which may make any comment or suggest changes it deems appropriate to the arbitral tribunal concerning the the fees.

ARTICLE 39 – APPORTIONMENT OF COSTS AND FEES

Except as provided in paragraph 2 or in Article 42 Arbitration, the costs of arbitration shall in principle be borne by the parties equally. However, the arbitral tribunal may apportion each of such costs between the parties if it determines that apportionment is reasonable, taking into account the circumstances of the case.

With respect to the costs of legal representation and assistance referred to in Article 37, paragraph (e), the arbitral tribunal, taking into account the circumstances of the case, shall be free to determine which party shall bear such costs or may apportion such costs between the parties if it determines that apportionment is reasonable and necessitated by law or justifiable because of the conduct of one of the parties during the proceedings.

When the arbitral tribunal issues an order for the termination of the arbitral proceedings or makes an award on agreed terms, it shall fix the costs of arbitration referred to in Article 37 and Article 38, paragraph 1, in the text of that order or award.

No additional fees may be charged by an arbitral tribunal for interpretation or correction or completion of its award under Articles 34 to 36.

ARTICLE 40 – DEPOSIT OF COSTS

TJC may request each party to deposit an equal amount as an advance for the costs referred to in Article 37, paragraphs (a), (b) and (c).

During the course of the arbitral proceedings the arbitral tribunal may request supplementary deposits from the parties.

If the required deposits are not paid in full within seven (7) days after the receipt of the request, TJC shall so inform the parties in order that one or another of them may make the required payment. If such payment is not made, TJC may order the suspension or termination of the arbitral proceedings.

After the award has been made, TJC shall render an accounting to the parties of the deposits received and return any unexpended balance to the parties.

ARTICLE 41 – EXPEDITED ARBITRATION

The parties may agree to shorten the various time-limits set out in these Any such agreement entered into subsequent to the constitution of an arbitral tribunal shall become effective only upon the approval of the tribunal.

TJC, on its own initiative or at the request of one or more parties, may extend any time limit which has been shortened by the parties under this Article.

ARTICLE 42 – SMALL CLAIMS; EMPLOYMENT ARBITRATION; CONSUMER ARBITRATION

This article 42 shall apply if the case is either (a) Small Claims, (b) Employment Arbitration, or (c) Consumer Arbitration. These cases are collectively called “Article 42 Arbitration.”

“Small Claims” are disputes where the amount in controversy is less than $50,000. “Employment Arbitration” are disputes involving an employee, as defined by applicable law, seeking a claim against an employer. “Consumer Arbitration” are disputes involving a consumer, as defined by applicable law, against a business entity, for consumer goods or services, as defined by applicable law. “Consumer Arbitration” shall also apply to arbitration involving a consumer client in a malpractice case against a professional, such as a lawyer or law firm.

In the event a dispute is an Article 42 Arbitration, the consumer, employee, or either party in a Small Claims case, shall be limited to a filing fee of $250.00 for a Statement of Claim whether as a Claimant or as a counterclaiming Respondent. An employer or business shall adhere to the normal fee schedule.

The panel shall consist of one arbitrator, selected pursuant to Article 9 of these Rules.

In a Consumer Arbitration or Employment Arbitration, the employer or business shall be responsible for arbitration costs.

ARTICLE 43 – MISCELLANEOUS

All functions assigned to TJC under these Rules shall be performed by a three-person committee of persons appointed by the Texas Justice Center’s board of directors, officers, or members.

These Rules may be may be amended from time to time by TJC. These Rules and any amendment of them shall apply in the form in effect at the time the administrative filing requirements are met for a demand for arbitration or submission agreement received by To ensure that you have the most current information, visit the TJC website at www.tjcadr.com.

ARTICLE 44 – EXCLUSION FROM LIABILITY

Neither TJC nor any arbitrator is a necessary party in judicial proceedings relating to an arbitration.

Neither TJC nor any arbitrator shall be liable to any party for any act or omission in connection with any arbitration conducted under these Rules, except for its/his/her own willful misconduct.

Each party utilizing TJC or TJC arbitrator(s) agrees to indemnify, hold harmless and provide a defense by a counsel selected by TJC or the arbitrator(s) in case TJC or the arbitrator(s) is (are) joined in a suit arising out of TJC arbitral proceedings.

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