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§ 172.203.Conduct of Conciliation

Title 7. Alternate Methods of Dispute Resolution · Chapter 172. Arbitration and Conciliation of International Commercial Disputes · Subchapter H. Provisions Relating Only to Conciliation · Last amended 1997 · Last verified August 29, 2026

In one sentenceSection 172.203 requires a conciliator to be guided by objectivity, fairness and justice and to consider the parties’ rights, trade usages and circumstances, lets the conciliator run the process as appropriate, and displaces other Texas procedural law.

Full Text of § 172.203

Text sizeJump to: (a) (b) (c)

(a)A conciliator:
(1)shall be guided by principles of objectivity, fairness, and justice; and
(2)shall consider, among other things:
(A)the rights and obligations of the parties;
(B)the usages of the trade concerned; and
(C)the circumstances surrounding the dispute, including any previous practices between the parties.
(b)The conciliator may conduct the conciliation in a manner that the conciliator considers appropriate, considering the circumstances of the case, the wishes of the parties, and the desirability of a speedy settlement of the dispute.
(c)Except as provided by this chapter, a law of this state governing procedure, other than this chapter, does not apply to conciliation under this chapter.
End

Plain-English Summary

How a conciliation is conducted, described by standards rather than rules.

Three guiding principles are named — objectivity, fairness and justice.

Three considerations follow. The rights and obligations of the parties; the usages of the trade concerned; and the circumstances surrounding the dispute, including any previous practices between the parties.

Trade usage and prior dealings appear again here, as they do for arbitrators in Section 172.102(e), and for the same reason: international commerce runs on practices the parties know.

The conciliator controls the procedure. It may be conducted in the manner the conciliator considers appropriate.

Three factors shape that discretion — the circumstances of the case, the wishes of the parties, and the desirability of a speedy settlement.

Speed is written into the standard, which fits a process chosen to avoid the length of an arbitration.

Other Texas procedural law does not apply. Except as provided by this chapter, a law of this state governing procedure does not apply to a conciliation under this chapter.

That exclusion keeps the process informal in fact. A conciliation is not a proceeding with pleadings and rules.

What remains from the chapter still binds — the disclosure duty, confidentiality, the conflict-of-interest bar and the enforceability provision.

Frequently Asked Questions

How is a conciliation conducted?

In the manner the conciliator considers appropriate, guided by objectivity, fairness and justice and considering the parties’ rights, trade usages and circumstances.

Do Texas procedural rules apply?

No. Except as provided by this chapter, state procedural law does not apply to a conciliation under it.

Does the conciliator have to move quickly?

The desirability of a speedy settlement is among the factors shaping the conciliator’s conduct of the process.

Amendment History

  • Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1, 1989. Redesignated from Vernon's Ann.Civ.St. art. 249-20 and amended by
  • Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1, 1997.
Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source