Can I challenge a binding arbitration award if the arbitrator ignored key evidence?

Thank you for reaching out. In Texas, binding arbitration awards are generally very difficult to overturn, as courts tend to respect the finality of arbitration decisions. However, there are limited grounds on which you can request to set aside or appeal an award. Under Texas law and the Federal Arbitration Act, you may be able to challenge the award if you can prove that the arbitrator exceeded their powers, acted in bad faith, or engaged in misconduct (such as refusing to consider crucial evidence). To challenge an award, you would typically file a motion to vacate with the court, but there are strict deadlines—usually within 90 days of the arbitrator’s decision. It’s important to consult with us to assess the strength of your case and ensure you meet all necessary deadlines.

Sincerely,

Ascendance International Consulting

Challenging a binding arbitration award is notoriously difficult because courts give extreme deference to arbitrators. However, the situation you described — an arbitrator refusing to hear material evidence — is one of the few specific grounds recognized by both Texas and Federal law to vacate (cancel) an award.

Since you are in Houston, your case is likely governed by either the Texas General Arbitration Act (TAA) or the Federal Arbitration Act (FAA). Both have very similar protections regarding evidence.

1. Your Legal Grounds: Refusal to Hear Evidence
You cannot usually challenge an award just because the arbitrator 'got it wrong' or made a bad decision. However, you can challenge it if the arbitrator was guilty of misconduct.

Under Texas Law (CPRC § 171.088): A court shall vacate an award if the arbitrator 'refused to hear evidence material to the controversy.'
Under Federal Law (9 U.S.C. § 10): A court may vacate where the arbitrators were guilty of misconduct in 'refusing to hear evidence pertinent and material to the controversy.'

The Argument: You must prove that the emails and receipts were not just 'helpful,' but material—meaning that if the arbitrator had considered them, the outcome of the case likely would have changed. If the arbitrator simply looked at them and decided they weren't convincing, you will likely lose. But if they refused to even look at or admit them into the record, you have a much stronger case.

2. The Deadlines (The 90-Day Rule)
Deadlines to challenge an award are strict and very short. If you miss them, the award usually becomes permanent.

Texas State Law: You must file an application to vacate the award within 90 days of the date the award was delivered to you.
Federal Law: You must serve notice of a motion to vacate within 3 months of the award being filed or delivered.

Warning: If the other party files a Motion to Confirm the award in court before you file your challenge, you must raise your objections immediately in your response, or you may waive them.

3. Recent Legal Changes in Houston (5th Circuit)
It is important to note that as of early 2025, the U.S. Fifth Circuit Court of Appeals (which covers Houston) issued a major ruling (U.S. Trinity Energy Services v. Southeast Directional Drilling) that strictly limited challenges.

They officially eliminated Manifest Disregard of the Law as a reason to overturn awards.
This means you cannot argue the arbitrator ignored the law. You must stick to the statutory ground that they refused to hear material evidence.

4. Your Next Steps
1) Review the Record: Did you clearly offer the emails and receipts during the hearing? Is there a transcript or a written ruling where the arbitrator explicitly refused them? You need proof of the refusal.
2) Check the Contract: Does your service contract specify which law applies (TAA or FAA)? This dictates which court you file in.
3) File a Motion to Vacate: You will need to file this in a Houston-area District Court (or Federal Court if applicable). Because this is a high-stakes, technical procedure with no do-overs, consulting a local litigation attorney is highly recommended.

Challenging a binding arbitration award is notoriously difficult because courts give extreme deference to arbitrators. However, the situation you described — an arbitrator refusing to hear material evidence — is one of the few specific grounds recognized by both Texas and Federal law to 'vacate' (cancel) an award.

Since you are in Houston, your case is likely governed by either the Texas General Arbitration Act (TAA) or the Federal Arbitration Act (FAA). Both have very similar protections regarding evidence.

1. Your Legal Grounds: 'Refusal to Hear Evidence'
You cannot usually challenge an award just because the arbitrator 'got it wrong' or made a bad decision. However, you can challenge it if the arbitrator was guilty of misconduct.

Under Texas Law (CPRC § 171.088): A court shall vacate an award if the arbitrator 'refused to hear evidence material to the controversy.'
Under Federal Law (9 U.S.C. § 10): A court may vacate where the arbitrators were guilty of misconduct in 'refusing to hear evidence pertinent and material to the controversy.'

The Argument: You must prove that the emails and receipts were not just 'helpful,' but material—meaning that if the arbitrator had considered them, the outcome of the case likely would have changed. If the arbitrator simply looked at them and decided they weren't convincing, you will likely lose. But if they refused to even look at or admit them into the record, you have a much stronger case.

2. The Deadlines (The '90-Day Rule')
Deadlines to challenge an award are strict and very short. If you miss them, the award usually becomes permanent.

Texas State Law: You must file an application to vacate the award within 90 days of the date the award was delivered to you.
Federal Law: You must serve notice of a motion to vacate within 3 months of the award being filed or delivered.

Warning: If the other party files a 'Motion to Confirm' the award in court before you file your challenge, you must raise your objections immediately in your response, or you may waive them.

3. Recent Legal Changes in Houston (5th Circuit)
It is important to note that as of early 2025, the U.S. Fifth Circuit Court of Appeals (which covers Houston) issued a major ruling (U.S. Trinity Energy Services v. Southeast Directional Drilling) that strictly limited challenges.
They officially eliminated 'Manifest Disregard of the Law' as a reason to overturn awards.
This means you cannot argue the arbitrator ignored the 'law.' You must stick to the statutory ground that they 'refused to hear material evidence.'

4. Your Next Steps
1) Review the Record: Did you clearly offer the emails and receipts during the hearing? Is there a transcript or a written ruling where the arbitrator explicitly refused them? You need proof of the refusal.
2) Check the Contract: Does your service contract specify which law applies (TAA or FAA)? This dictates which court you file in.
3) File a Motion to Vacate: You will need to file this in a Houston-area District Court (or Federal Court if applicable). Because this is a high-stakes, technical procedure with no 'do-overs,' consulting a local litigation attorney is highly recommended.