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Selecting Cases for Arbitration

Any contract, lease or other written contract may contain an arbitration clause. By using such a clause, the parties agree to arbitrate any future disputes. As with any clause, all parties must agree to it, and the following arbitration clause does not have to be used “as is” in order to use the services of United States Arbitration & Mediation.

SAMPLE ARBITRATION CLAUSE:

In the event a dispute shall arise between the parties to this [contract, lease, etc.], it is hereby agreed that the dispute shall be referred to United States Arbitration and Mediation for arbitration in accordance with United States Arbitration and Mediation Rules of Arbitration. The arbitrator’s decision shall be final and binding and judgment may be entered thereon. In the event a party fails to proceed with arbitration, unsuccessfully challenges the arbitrator’s award, or fails to comply with arbitrator’s award, the other party is entitled of costs of suit including a reasonable attorney’s fee for having to compel arbitration or defend or enforce the award.


In Missouri, arbitration contracts are required to contain the following language, in boldface and “ten-point capital letters,” above the signature lines:

THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.


pdf Commercial Finance Arbitration Clause

pdf Arbitration Clause, Short Form

pdf Mediation & Arbitration Clause, Short Form

(Adobe® Acrobat Required, get it here)

Other Considerations:

Fees

Rule 9 sets forth how arbitration fees are to be paid. Alternative fee-paying arrangements may be created by the parties in their arbitration clause, with the consent of United States Arbitration and Mediation.

Number of Arbitrators

Unless the parties agree otherwise, only one arbitrator is to be assigned to hear a case. In the arbitration clause, parties may specify a different number of arbitrators (usually three) to hear their case.

Attorney's Fees

In most states, an arbitrator may not award attorney's fees unless a statute or the parties’ arbitration agreement specifically provides for such an award.

Mediation

We strongly suggest that the parties mediate prior to arbitrating. Mediation can save time and money, by either resolving the matter or narrowing the issues to be arbitrated. The arbitration administrative fee will be waived if parties agree to mediate in accordance with the USA&M Mediation Procedures prior to arbitrating.

Assistance

Upon request, United States Arbitration & Mediation, will help the parties customize a mediation/arbitration provision to fit their particular needs.

Internal Appeal

The Internal Appeal Procedure, found under Rule 16 of the Rules of Arbitration, applies only when the parties specifically agree in their contract to arbitrate. The Appeal Rule does not apply unless the parties specifically agree that it will.



NOTE: Nothing contained herein is intended to give legal advice. Individuals should always consult with an attorney before entering into a contract.

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