Can a company avoid an arbitration payout?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can a company avoid an arbitration payout?

If a company is ordered to pay through arbitration, is there anyway for them to get out of that payment

through bankruptcy etc.?

Asked on November 17, 2017 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

A bankruptcy could get out of having to pay an amount awarded in arbitration, and/or reduce that amount and/or delay (or draw out over time) payments, the same way it could due these things to a court judgment (if you'd sued in court and won) or to any other debt or obligation. They company would have to qualify for bankruptcy, and the exact effect would depend on the type of bankruptcy they filed for, but as a general notion, an arbitration award is not immune or exempt from bankrupty.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption