Can a company avoid an arbitration payout?
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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 6 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.
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