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.