Haynes and Boone's Newsroom
Orange County Business Journal Guest Article: Not All Arbitration Clauses Are Created Equal - Are you getting what you bargained for?
A common clause in today's commercial contracts is the "dispute resolution" clause. When a new case arrives at your litigator's door, the first clause your attorney will look for is the dispute resolution provision so they know where the case is to be filed/defended and the "rules of engagement." Unfortunately, it is often at this point that the client realizes for the first time how the dispute will be resolved. Indeed, the terms of this clause will often dictate, among other things: the qualifications of the person deciding your matter; the amount and cost of pre-hearing discovery allowed; the cost of the hearing; and whether you have any meaningful recourse on appeal if there is an adverse result. Because these issues affect your ability to meet your expectations for the alternative dispute resolution process, it is critical that thought be given to these issues at the contract negotiation stage. This article will highlight some questions and considerations when you encounter an alternative dispute resolution ("ADR") clause in a draft contract.
Excerpt from the Orange County Business Journal, Nov. 21, 2011. To view the full article, click the PDF linked below.
PDF - Not All Arbitration Clauses Are Created Equal (Orange County Business Journal)