Allowing one party to an arbitration agreement—but not the other—to recover attorney fees for a breach of contract doesn’t make an arbitration agreement per se unconscionable, the Texas Supreme Court held on Friday.
“Parties are generally free to contract for attorney fees as they see fit,” wrote Justice John Devine for a unanimous court. “Thus, a contract that expressly provides for one party’s attorney fees, but not another’s, is not unconscionable per se. Although perhaps relevant to a broader inquiry into contractual oppression or an imbalance in bargaining power, the attorney fee provision here is not, standing alone, decisive proof of an unconscionable bargain.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]