Can you ask for damages in arbitration?

Asked by: Horace Schuster  |  Last update: April 21, 2026
Score: 4.4/5 (54 votes)

Yes, you can absolutely ask for various types of damages in arbitration, including compensatory, consequential, and sometimes punitive damages, but the specific types and amounts depend on the arbitration agreement, institutional rules (like AAA), and governing state law, with some jurisdictions (like New York) limiting punitive awards. Arbitrators have broad power to grant remedies like monetary compensation or injunctions, essentially mirroring court authority, but the contract's language is key.

Can damages be awarded in arbitration?

The parties' rules may dictate whether an arbitrator can award punitive damages. Although rare, parties may include in their arbitration clause express wording allowing (or disallowing) punitive damages. Likewise, most arbitral institutional rules are silent on remedies.

What is the protocol on determination of damages in arbitration?

The Protocol on Determination of Damages in Arbitration has as its purpose providing guidance to arbitrators, counsel and their clients concerning the efficient and fair development and presentation of damages evidence in arbitration proceedings.

Can you negotiate in arbitration?

You can negotiate the arbitration process and, theoretically, end up with a more qualified arbitrator or arbitration panel as result of your input in the selection process.

What is the rule 17 of arbitration?

Rule 17.

The Arbitrator may modify these obligations at the Preliminary Conference. (b) Each Party may take one deposition of an opposing Party or of one individual under the control of the opposing Party. The Parties shall attempt to agree on the time, location and duration of the deposition.

What should you do if the employer's attorney wants to talk settlement?

16 related questions found

What is the rule 33 in arbitration?

The AAA Commercial Rule 33 now provides: “[t]he arbitrator may allow the filing of and make rulings upon a dispositive motion only if the arbitrator determines that the moving party has shown that the motion is likely to succeed and dispose of or narrow the issues in the case.” Likewise, the AAA Consumer Rule 33 and ...

What is the JAMS rule 24?

(JAMS Rule 24(a).) Within seven days after JAMS serves the award, any party may serve on JAMS and all other parties a request that the arbitrator correct the award for a computational, typographical, or other ministerial error in the award, not a substantive matter affecting the merits (JAMS Rule 24(j)).

Is it better to settle or go to arbitration?

Deciding between settling and arbitration depends on your goals: settling offers guaranteed, quicker resolution (often cheaper) but might mean less money; arbitration is faster and more private than court, with a neutral decision-maker, but can have high fees and lacks appeal rights, sometimes favoring the larger party like an insurer. Your best choice hinges on your tolerance for risk, need for privacy, desire for control, and the specifics of your case, so consulting a lawyer is crucial. 

Who pays the costs in arbitration?

The American Rule (parties generally bear their own costs and fees). The pure “costs follow the event” rule (the loser pays all costs and fees). The pro rata “costs follow the event” rule (the loser pays costs and fees in proportion with the outcome).

What are the 5 C's of negotiation?

The "5 Cs of Negotiation" offer a framework for successful talks, commonly emphasizing Communication, Collaboration, Creativity, Compromise, and Credibility (or Consistency), focusing on building trust and finding win-win solutions by clearly sharing information, working together, thinking outside the box, finding middle ground, and proving reliability to achieve lasting agreements. 

What cannot be settled by arbitration?

Disputes that cannot be resolved through arbitration

  • Criminal offences.
  • Matrimonial disputes.
  • Guardianship matters.
  • Insolvency petitions.
  • Testamentary suits.
  • Trust disputes.
  • Labour and industrial disputes.
  • Tenancy and eviction matters governed by rent control statutes.

What are the five types of damages?

There are five important types of damages that might be available, depending on your situation: compensatory damages, specific performance, an injunction, liquidated damages, or rescission. If you are dealing with a potential breach of contract, you probably need legal advice on what you should do next.

Is it hard to prove punitive damages?

You must present “clear and convincing” evidence to win punitive damages. To meet this burden, you must prove that your claim is substantially more likely to be true than untrue. In medical malpractice cases, you can only request punitive damages if the court permits you to file an amended claim requesting them.

What are the four main types of damages?

The four main types of legal damages awarded in lawsuits are Compensatory (to cover actual losses), Punitive (to punish wrongdoing), Nominal (symbolic, for a proven wrong with minimal loss), and Liquidated (pre-agreed amounts in contracts). These aim to restore the injured party, punish the wrongdoer, acknowledge a violation, or enforce contract terms, covering both tangible (economic) and intangible (non-economic) harms. 

How do you turn an arbitration award into a Judgement?

In short, if a party to an arbitration wants their award to have the effect of an enforceable judgment, they need to petition the court to confirm the award. Though, it must be noted that the petition to confirm needs to be filed no later than four years after the arbitration award is issued.

What are exemplary damages in arbitration?

Punitive damages, also called exemplary damages, are "sums awarded apart from any compensatory or normal damages, usually because of particularly aggravated misconduct on the part of the defendant".

What are the odds of winning arbitration?

Arbitration is often in a condition of employment. For example, an employee complained that she's been biased and unfair. For example, research by Colvin reveals employees win 36.4 percent of discrimination cases in federal court and 43.8 percent in state court, but only 21.4 percent in arbitration.

How much does an arbitration lawyer cost?

Private arbitrators in California can charge anywhere from $200 to $1,000 per hour. If they have to travel, you may also be obligated to pay related expenses.

Is it worth going to arbitration?

Arbitration is not right for every case, but it offers benefits in some personal injury claims. It can streamline the resolution process and reduce legal costs. In the right circumstances, arbitration can also provide a more predictable and controlled outcome compared to a jury trial.

What is the downside of arbitration?

The disadvantages of arbitration

Both sides give up their right to an appeal, which means one party could end up feeling slighted. If the matter is complicated but the amount of money involved is modest, the arbitrator's fee may make arbitration uneconomical.

How long does arbitration take to settle?

Arbitration is similar to going to court, but faster, cheaper and less complex than litigation. If the case settles, an arbitration will last around one year. If the case goes to hearing, an arbitration typically takes 16 months.

Is arbitration a win-win situation?

In fact, research from the U.S. Chamber of Commerce Institute for Legal Reform (2022) shows that arbitration can be beneficial for consumers: Consumers are more likely to win in arbitration (42%) than in court (29%); They win higher average awards in arbitration ($80,000) compared to court ($71,000); and.

What is the biggest problem of arbitration?

One of the biggest faults I see in arbitration is that it is strictly adversarial, meaning that there is a person, or in some cases a panel of people, whose job it is to make a decision. They must determine a winner in a dispute. Arbitration leaves no room for finding a solution to the problem.

What is the average duration of arbitration?

Median Duration of International Arbitration

The median durations above range from 11.7 months to 22 months. The average of the median durations is about 15 months. Note the figures above do not account for small differences in calculation methodologies.

How do I write a letter requesting arbitration?

In general, a Request for Arbitration or a Notice of Arbitration must contain the names of each of the parties, the names of the parties' representatives, a description of the dispute giving rise to claims, a statement of the relief sought, a description of the agreement containing the arbitration clause, the choice of ...