§ 1273.040.Terms and Conditions Specified In Agreement; Abandonment

Agreeing to arbitrate doesn't necessarily lock the acquiring party into completing the acquisition. This section governs when and how that party can still walk away, and what it owes the other side if it does.

An arbitration agreement under this chapter can spell out its own terms and conditions for abandonment. Absent an agreement saying acquisition may not be abandoned, the default rule lets the acquiring party abandon the acquisition, the arbitration proceeding, and any related eminent domain proceeding at any time up until the deadline for filing and serving a petition or response to vacate an arbitration award.

Abandonment after the arbitration agreement was signed triggers a right to recover. The party from whom the property was to be acquired can recover all expenses reasonably and necessarily incurred preparing for the arbitration and for related judicial proceedings, incurred during those proceedings, and incurred in any later judicial proceedings connected to the acquisition. On top of those expenses, that party can also recover reasonable attorney's fees, appraisal fees, and fees for other experts whose services were reasonably and necessarily needed to protect that party's interests in connection with the acquisition. Unless the agreement says otherwise, arbitration itself determines the dollar amount of these expenses and fees.