Contractual Sanctity Or Procedural Absolutism? A Critical Analysis Of Damages For Breach Of Arbitration Agreements
- IJLLR Journal
- Mar 6
- 1 min read
Vibodh Singh and Nripangana Deka
ABSTRACT
Recognition of damages as a remedy for breach of arbitration agreements is a big development in the evolving arbitration jurisprudence. Courts have increasingly treated the initiation of court proceedings contrary to an arbitration clause as a contractual wrong, reinforcing party autonomy and discouraging parallel litigation. However, this approach raises a fundamental question, which is- whether every recourse to courts in the face of an arbitration agreement be characterized as a breach? In matters concerning the validity, scope, and arbitrability of disputes, judicial restraint is usually advised. In this context, imposing damages for all unsuccessful court challenges risks conflating bona fide jurisdictional objections with abusive litigation. This paper examines the doctrinal boundary between legitimate judicial recourse and contractual breach, arguing that liability should arise only in cases of bad faith, vexatious conduct, or procedural abuse.
