We offer the following model dispute resolution clauses* to be inserted into a contract prior to any dispute ever arising. Including an ADR clause at time of contract formation is most effective, as the parties are cooperative and consider the chance that a dispute will arise a remote possibility.

Monday
Aug162010

Model Mediation Clause

In the event a dispute shall arise between the parties to this [contract, lease, etc.], the parties agree to participate in at least four hours of mediation in accordance with the Mediation Rules and Procedures of the Agency for Dispute Resolution (ADR). The parties agree to share equally in the costs of the mediation and cooperate fully in the effort to schedule a mediation session within 30 days of a mediation request by either party to this [contract, lease, etc.].



Monday
Aug162010

Model Arbitration Clause

Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in (insert the desired arbitration venue), held before (one) (three) arbitrator(s). The arbitration shall be administered by the Agency for Dispute Resolution (ADR) pursuant to its Arbitration Rules and Procedures. Judgment on the Award may be entered in any court having jurisdiction. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. The arbitrator may, in the Arbitration Award, allocate all or part of the costs of the arbitration, including the fees of the arbitrator and the reasonable attorneys’ fees of the prevailing party.

Monday
Aug162010

Model "Med-Arb" Clause

In order to provide finality in a dispute resolution clause, many parties include an arbitration provision, in the event the dispute is not settled during mediation. A "med-arb" clause would consist of both the mediation clause such as the one suggested above, followed by language that states:

In the event the dispute is not resolved through mediation, the parties agree to immediately proceed to arbitration administered by the Agency for Dispute Resolution (ADR) pursuant to its Arbitration Rules and Procedures, either on the same day or within [ ] days of the mediation date, by agreement of the parties. The parties agree to share equally in the costs of the arbitration and cooperate fully in the effort to schedule the arbitration hearing. The arbitrator shall have the authority to award all mediation and arbitration costs to the prevailing party, at the discretion of the arbitrator. The award of the arbitrator shall be considered final and binding on the parties.