Arbitration Sample Clauses

Sample Arbitration Clauses

• Simple
• Comprehensive

Disclaimer:  This sample clause is provided with the understanding that United States Arbitration Association | USADR is not rendering any legal or other professional service.  No representation or warranty is made concerning the application of the legal or other principles in this clause to any specific fact situation, nor is any prediction made concerning how any particular judge, arbitrator or other official will interpret or apply this clause. The proper use or application of this clause is a matter for the considered judgment of the individual legal practitioner, and the author and USADR disclaim all liability therefore.  Attorneys dealing with specific legal matters should also fully research current primary authorities.

Sample Arbitration Clause - Simple:

The Parties hereto agree that any and all claims, controversies or disputes arising from or related to this Agreement, including, but not limited to those claims, controversies or disputes pertaining to the formation, construction, performance, applicability, interpretation, enforceability, or breach of this Agreement, or any claim or assertion that all or part of this Agreement is void or voidable, shall be settled by binding arbitration according to the rules of United States Arbitration Association | USADR. The arbitrator may consider the testimony and evidence presented by the parties through any or all of the following according to the rules of USADR:  documentary submission, teleconference attended by the parties and legal counsel if any, or through a scheduled hearing physically-attended by the parties and legal counsel if any.  Any physical hearing that the parties attend shall be held in [city, state]. The Parties hereto also agree that any award tendered by the arbitrator may be entered as a judgment in the [City District Court] and enforceable as an order of said court and the Parties hereby submit to the venue and jurisdiction of that court for purposes of enforcement of any arbitration award.  The Federal Arbitration Act shall govern the interpretation, enforcement and proceedings pursuant to the arbitration clause in this agreement.

Sample Arbitration Clause - Comprehensive

1.  Dispute Resolution

In the event of any dispute, claim, question or disagreement (the “Controversy”) arising from or relating to this Agreement or the breach thereof, the parties hereto shall use reasonable efforts to settle the Controversy.  To this effect, upon notice from one party to the other of a Controversy, they shall consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to both parties. 

2.  Escalation Procedure

The parties shall escalate the Controversy within their respective companies as follows:
Issues shall be escalated by first contacting the individual identified in the “First Contact” row.  If after the defined response time, the issue(s) remain(s) unresolved, the individual in the “Second” Contact” row will be contacted, and so forth.  Each contact shall have the amount of time indicated in the “Response Time” column for bringing resolution to the issue, prior to the issue being escalated to the next contact level.

3.  Arbitration

    a)     Rules of Arbitration -- If the parties do not reach such solution within a period of sixty (60) days of the giving of notice of the existence of a Controversy by either party, then, upon notice by either party to the other, the Controversy shall be finally settled by arbitration administered by United States Arbitration Association (USADR) in accordance with the provisions of the USADR Arbitration Rules which may be implemented even during the sixty (60) day negotiation period noted above.
    b)     Applicable Procedures -- All Controversies with claim amounts of $0 - $14,999 shall be made subject to USADR's Small Claims Procedures.  Controversied with claims between $15,000 - $74,999 shall be made subject to Expedited Procedures, all Controversies in excess of $75,000 shall be made subject to USADR's Large Claim Procedures.  
    c)     Selection of Arbitrators -- If the Controversy is for $500,000 or less, the case shall be heard by a sole arbitrator.  In all other instances, the case shall be heard by three (3) arbitrators.
    d)     Governing Law for Arbitration -- This Agreement shall be governed by and interpreted in accordance with the (arbitration laws of the State of _____) OR (according to the Federal Arbitration Act).  All arbitration physical hearings for claims exceeding $75,000 shall be conducted in City, State. 
    e)    Sharing of Documentation -- Consistent with the expedited nature of arbitration, each party will, upon written request of the other party, promptly provide the other with copies of documents relevant to the issues raised by any claim or counterclaim.  Any Controversy regarding discovery, or the relevance or scope thereof, shall be determined by the sole arbitrator or the chair of the arbitration panel, which determination shall be conclusive.  All discovery shall be completed within 60 days following the preliminary hearing.
    f)     Depositions -- At the request of a party in a Controversy in excess of $250,000, the sole arbitrator or the chair of the arbitration panel shall have the discretion to order examination by deposition of witnesses to the extent s/he deems such additional discovery relevant and appropriate.  Depositions shall be limited to a maximum of three per party and shall be held within 30 days of making the request.  Additional depositions may be scheduled only with the permission of the sole arbitrator or the chair of the arbitration panel, and for good cause shown.  Each deposition shall be limited to four (4) hours duration (direct examination).  All objections are reserved for the arbitration hearing except for objections based on privilege and proprietary or confidential information.
    g)    Authority of Arbitrator(s) -- The arbitrator(s) will have authority to award punitive, special, consequential or incidental damages as permitted by governing law.  Any monetary award in an arbitration initiated under this clause shall include pre-award interest at the rate of __% per annum from the time of the act or acts giving rise to the award.  The arbitrator(s) may award to the prevailing party all costs and fees associated with arbitration in the final award.  “Costs and fees” mean all reasonable pre-award expenses of the arbitration, including arbitrators’ fees, administrative fees, travel expenses, out-of-pocket expenses such as copying and telephone, court costs, witness fees and attorneys’ fees.
    h)     Judgment -- The parties agree that a judgment of any court having jurisdiction may be entered on the award of the arbitrator.
    i)     Confidentiality  -- USADR shall not publish arbitration awards.