Can You Withdraw from Arbitration After Preliminary Award ?
In Tejas Development Corporation v. McGough Brothers, 165 F.2d 276, 279-283 (5th Cir. 1947) the Fifth Circuit addressed whether a party to an arbitration could withdraw after the arbiter made a preliminary award. Id.
Specifically, the arbitrators made a preliminary award on some of the claims, but left other claims unresolved. Id. at 281.
Applying Texas law, the Fifth Circuit rejected the proposition that a party could withdraw from arbitration after a preliminary award had been made. See id. at 282.
Although no Texas case addresses this precise issue, the Texas Supreme Court cited Tejas Development with approval in L.H. Lacy Company v. City of Lubbock. 559 S.W.2d 348, 352 (Tex. 1977).
The Lacy Court cited Tejas Development for the proposition that "an attempt to withdraw after the arbiter had made a preliminary award was viewed as ineffective under Texas common law." Id.