If, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitral tribunal, record the settlement in the form of an arbitral award on agreed terms.
§ 1297.302.Termination of Proceedings Upon Settlement During Arbitral Proceedings
Title 9.3. Arbitration and Conciliation of International Commercial Disputes · Chapter 6. Making of Arbitral Award and Termination of Proceedings · Article 3. Settlement · Enacted 1988 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1297.302 requires the arbitral tribunal to terminate the proceedings once the parties settle during arbitration, and to record that settlement as an arbitral award on agreed terms if the parties request it and the tribunal doesn't object.
Full Text of § 1297.302
Plain-English Summary
A settlement mid-arbitration raises an immediate practical question: what happens to the case itself? This section answers it in two steps. First, if the parties settle the dispute during the arbitral proceedings, the tribunal terminates the proceedings -- there's no longer a live dispute for the tribunal to decide.
Second, the tribunal has the option to give that settlement a more formal shape. If the parties request it, and the tribunal doesn't object, the tribunal records the settlement in the form of an arbitral award on agreed terms rather than closing the file outright. That converts a private settlement agreement into something with the standing of an arbitral award, which matters a great deal for how easily it can later be enforced.
Frequently Asked Questions
What happens to the arbitration once the parties reach a settlement?
The arbitral tribunal terminates the proceedings.
Can the parties get the settlement formalized as part of the arbitration record?
Yes. If the parties request it and the tribunal doesn't object, the tribunal records the settlement in the form of an arbitral award on agreed terms.
Can the tribunal refuse to issue an award on agreed terms?
Yes. The tribunal can object to recording the settlement as an award, in which case the parties' settlement stands on its own without that award status.
What requirements does an award on agreed terms have to meet?
Section 1297.303 requires it to comply with the form-and-content rules in Article 4 and to state that it is an arbitral award.
Amendment History
Added by Stats. 1988, Ch. 23, Sec. 1. Effective March 7, 1988.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
Also known as: settlement during arbitration terminates proceedingsarbitral award on agreed terms california