Arbitration Clause

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Arbitration Clause

A clause in a contract stating that, in the event of a dispute, parties shall follow an extrajudicial means of resolution in which they make their cases before an impartial person or panel. The clause may also indicate the specific process the parties shall follow in the event of arbitration. The clause is intended to save both parties the time and expense of a lawsuit.
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com (search "ICC Arbitration Clause for Trust Disputes" and follow "Commission Report" hyperlink) (providing a model arbitration clause and accompanying commentary); ACTEC, supra note 13, at 34-42 (providing sample arbitration-related clauses for trusts and wills); Bosques-Hernandez, supra note 17, at 8-12 (discussing the theories under which an arbitration clause in a trust deed can be enforced); Hayton, supra note 271, at 71-72 (identifying and attempting to resolve obstacles to the enforceability of arbitration clauses in trust deeds); Hayton, supra note 154, at 17 (suggesting tips for drafting effective virtual representation clauses in trust instruments); Hwang, supra note 1, at 84 (describing the ICC model arbitration clause for trusts); Bridget A.
The Supreme Court of Canada, perhaps recognizing the growing importance of private international arbitration clauses, will set a precedent in the strength of arbitration and choice of forum clauses in private business-to-business dispute resolution where a party has taken steps to file legal process in its own defence, just in case the arbitration is invalidated.
For example, the venue and language of the Arbitration; who appoints the Arbitrator(s); the procedure to be followed; and the applicable law; to avoid the arbitration clause being held to be void for uncertainty.
53) By failing to define the holding's scope, the Court's decision negatively impacts groups such as employees and consumers who have inferior bargaining power against big corporations that are responsible for drafting contracts and arbitration clauses in the first place.
Litigation Over the Scope and Meaning of the Arbitration Clause
We advise CPAs to not use a general arbitration clause in an engagement letter.
While China is taking steps to join the modern business world by embracing pre-dispute arbitration clauses in franchise contracts, some 7,000 miles away in Washington, D.
The District Court of the Virgin Islands ruled that the arbitration clause was unenforceable because of lack of mutual consent.
Additional litigation costs associated with arbitration can be incurred where the policyholder has purchased a large layered or subscription insurance program, and two or more of the insurance policies sneak in arbitration clauses.
The court noted that even a broad form arbitration clause will not cover every type of dispute that might arise between those bound by an arbitration agreement.
His firm has been able to overturn arbitration clauses in California because of the state's tight requirements.
The court found that a section of the General Business Law, which prohibited mandatory arbitration clauses in contracts for sale of consumer goods, applied to this case and precluded the architect from requiring that the dispute be arbitrated.